CPU shortage is coming! Intel and AMD raised prices again in March, already rising by 10%-15% this year, and the delivery cycle has been extended to up to 6 months.

# Xu Chao

Source: Wall Street CN

Intel and AMD are both facing severe shortages, with CPU prices surging by up to 15% and lead times jumping from two weeks to half a year. HP and Dell are bearing the brunt, while gaming PC makers complain that “even with money, we can’t get stock.” The AI computing boom is swallowing up global chip capacity, and a supply crunch sweeping the PC and server markets has arrived. Arm architecture may seize the opportunity to reshape the industry landscape.

Persistent CPU shortages from Intel and AMD are adding further pressure on PC and server manufacturers already struggling with memory chip shortfalls.

According to Nikkei Asia, Intel and AMD have notified customers of price hikes across their full CPU lineups starting in March and April respectively. Multiple sources familiar with the matter said CPU prices have been raised several times this year, with an average increase of 10% to 15%, and even higher for some products. Meanwhile, lead times have skyrocketed from one to two weeks to an average of 8 to 12 weeks, and in some cases up to six months.

The supply crunch is rapidly reshaping the PC and server markets. Several industry executives warned that the CPU shortage could worsen further in the April–June quarter, and supply pressures on the x86 architecture are opening a larger market window for Arm-based processors.

## Supply-demand gap widens sharply, HP and Dell hit hardest

Nikkei reported that top PC makers including HP and Dell began seeing a clear gap between their CPU demand and actual available supply in late February, with conditions far more severe than a few months ago.

An executive at a server manufacturer distributing NVIDIA, AMD and Intel products said: “Previously, average CPU lead times were around one to two weeks, but now they have stretched to 8 to 12 weeks on average.” An executive at a server and PC distributor noted that in some cases, CPU wait times have reached six months.

An executive at a gaming PC firm described the dilemma bluntly: “If only spending more money could fix the problem. What worries us is that even paying extra doesn’t guarantee delivery. The CPU shortage is getting worse by the day, on par with the memory chip situation.”

## Explosive AI demand is the root cause, general server market exceeds expectations

Mirroring the logic behind memory chip shortages, the explosive growth in AI computing demand is the core driver of the current CPU crunch — raw materials and capacity are being heavily absorbed by AI chip giants including NVIDIA, Broadcom, Google and Amazon.

Brady Wang, an analyst at Anti-Analytics Research, pointed out that demand for general-purpose and storage servers has far outpaced earlier forecasts. “Not every server needs a powerful GPU or AI accelerator. The massive deployment of AI data center servers requires more general and storage infrastructure for support, all of which rely on CPUs.”

A manager at a server manufacturer familiar with the situation added: “General server growth could approach 15% this year, but Intel’s capacity expansion is only in the single digits, creating a significant supply-demand imbalance.”

## Intel and AMD both hit capacity bottlenecks

Intel and AMD are both pushing to expand production, but progress cannot keep pace with demand.

Sources said Intel is ramping up capacity at its in-house fabs, but volume expansion will take time, and the company also faces constraints in chip substrate supply. AMD outsources all manufacturing to foundries including TSMC and Samsung, forcing it to compete for capacity with AI chip giants such as NVIDIA and Google.

Intel CEO Lip-Bu Tan told investors in late January that supply constraints are limiting the company’s ability to fully capitalize on core market opportunities. AMD CEO Lisa Su said at an investor conference that the company is seeing strong growth in server CPU demand and is working to boost supply.

The shortage also shows structural divergence. Jose Liao, general manager of Asus’ system business unit, noted that mid-range x86 CPUs face an even larger supply gap, as Intel and AMD are focusing more on high-end chips. “The supply gap is indeed widening and is expected to persist.”

## Arm architecture rises amid shortages, challenging x86 dominance

The CPU shortage is accelerating the market shift toward Arm architecture. An executive at a supplier serving Asus, HP and Dell said customers are increasing investment in 2026 to design PC products using Arm-based CPUs. “I’m definitely seeing some switching, especially because of the prominent Intel CPU shortage.”

Jose Liao revealed that around 30% of Asus Copilot AI PCs now use Arm-based CPUs, up sharply from roughly 20% at the end of last year, with the share expected to keep rising throughout the year.

For context, Intel and AMD both design CPUs using the x86 architecture, which accounted for over 85% of PC processors and around 78% of server processors in 2025. This week, Arm announced its own server CPU product to capitalize on the AI wave, marking a formal shift from its longstanding role as a neutral third-party software infrastructure provider — a move that could further intensify competitive pressure on the x86 camp.

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