This article first appeared on GuruFocus.
Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD) have notified customers in China of longer wait times for server processors as CPU supply tightens, according to a Reuters report.
Intel recently told clients that delivery lead times for some server central processing units now extend up to six months.People familiar with the matter said prices for Intel’s server products in China have risen more than 10% in many cases, though pricing varies by customer contracts.
China accounts for over 20% of Intel’s revenue. The company’s fourth- and fifth-generation Xeon chips appear to be in particularly short supply, with shipments rationed to key buyers.
AMD has also alerted customers to constraints. Delivery timelines for certain products have stretched to about eight to 10 weeks.
Intel previously flagged CPU supply pressure during its January earnings call. In a statement, the company said rapid adoption of artificial intelligence has lifted demand for traditional compute.
Intel expects inventory to reach its lowest level in the first quarter but said it is working to improve availability through the second quarter of 2026.
The developing shortage may complicate planning for AI companies and manufacturers that rely on data-center hardware, according to a recent press release.