Reviewed by Gotrade Internal Analyst
Gotrade News - Intel and AMD are giving their Chinese customers a heads-up about a serious supply crunch for server CPUs. You need to watch this space because this bottleneck is pushing prices up and could choke production across the tech sector.
Exclusive sources told Reuters that wait times for Intel’s gear have stretched to a painful six months. This scarcity has already forced prices for Intel server products in China to jump by more than 10 percent.
Key Takeaways:
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Intel deliveries are delayed up to 6 months, while AMD faces 8–10 week lags.
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Factories are prioritizing AI chips, leaving traditional server CPUs on the back burner.
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Intel’s grip is slipping to 60 percent share, with AMD climbing to over 20 percent.
The frantic rush for AI infrastructure is eating up the supply chain, and it’s not just about the fancy AI chips. The demand for complex "agentic AI" systems is putting massive pressure on memory chips and standard CPUs.
Taiwan Semiconductor Manufacturing is reportedly prioritizing AI silicon, leaving limited capacity for standard server CPUs. To make matters worse, soaring memory chip prices are forcing buyers to panic-buy CPUs just to lock in costs, worsening the jam.
China accounts for over 20 percent of Intel’s revenue, housing giants like Alibaba and Tencent. This supply snag could throw a wrench in the works for major tech players relying on regular server upgrades.
Intel admitted in its earnings call that the rapid AI adoption is driving demand for "traditional compute." Management expects inventory to hit rock bottom in Q1, with supply only bouncing back starting Q2 2026.
Meanwhile, AMD insists it can handle the heat thanks to strong supply chain deals. However, sources suggest even they aren't immune, with wait times slipping to nearly three months due to similar constraints.
The duopoly battle is heating up as the market pivots toward efficiency. A UBS report in January highlighted Intel’s slide from 90 percent dominance down to roughly 60 percent in 2025, while AMD is steadily eating their lunch.
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Reference:
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Reuters, Exclusive-Intel, AMD notify customers in China of lengthy waits for CPUs. Accessed on February 6, 2026
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