CPU shortage deepens as Intel and AMD prioritize AI servers over consumer PCs

PC makers face shortages of Intel and AMD CPUs that stretch up to six months -- lead time for orders jumps from just two weeks in the face of AI demand

AI demand for server CPUs is starting to affect the supply for consumer processors. PC makers are facing new challenges as the memory and storage chip shortage is now being compounded by a lack of supply of Intel and AMD CPUs. According to Nikkei Asia, some manufacturers like HP and Dell are now saying that the number of processors that get delivered to them no longer matches the required volume, with some sources saying that the situation is getting worse compared to some months back. This shortage is causing prices to increase, with costs rising by an average of 10% to 15%, if not more. More importantly, orders are also facing delays, with lead times jumping from around a couple of weeks to six months in some cases. "Previously, the average lead time for a CPU was around one to two weeks, but now the wait time has prolonged to an average of eight to 12 weeks," one server manufacturer executive told Nikkei Asia, while another one said that this could extend up to six months. Furthermore, other industry sources expect this to become much worse in the second quarter of 2026, and PC makers can't solve the problem by throwing cash at it. "If money can solve the problem, that would be great," an executive for a gaming PC brand told the publication. "What we worry about is that even if we pay more, we still cannot get more. The CPU shortage is getting more serious day by day, no less than the memory chip situation." We first saw inklings of this in early February, when Intel and AMD server CPUs reported supply shortages in China. The two companies even confirmed spikes in CPU demand during their respective quarterly financial results, with AMD CEO Dr. Lisa Su saying that business exceeded expectations and Intel CFO David Zinsner mentioning that "the CPU has become cool again this year." Just like the current memory and storage chip shortage, this jump in CPU demand is coming from AI hyperscalers. Tech companies bought up as many GPUs as they could when AI LLMs were popularized by ChatGPT, resulting in the GPU shortage between 2023 and mid-2025. But as the graphics cards supply normalized, we started experiencing memory and storage chip shortages, beginning in late 2025. As AI tech firms were willing to pay top-dollar for these chips, manufacturers moved the majority of their production capacity for these premium customers, leaving the consumer market struggling to fight over what little remained. It has even gotten to the point that Micron, the maker of Crucial SSDs and RAM, has exited the consumer market to focus on AI and enterprise customers. Now, it seems that we're getting a CPU shortage even before the memory and storage chip supply has yet to recover. That's because while AI training relies heavily on GPUs, the rest of the system relies on CPUs. And as smaller models and agentic AI become more popular, the demand for server processors is increasing as well. On the surface, this does not bode well for the PC market. One server manufacturer employee told Nikkei Asia that demand for general-purpose server CPUs could increase by nearly 15% in 2026, but Intel's output capacity is only going up by single-digit rates. Furthermore, since AMD does not have its own fab, it must compete with other companies that make chips, like Nvidia and Google, for capacity from foundries like TSMC and Samsung. However, this is an opportunity for Arm-based chips to step up and capture more of the market, especially in mainstream laptops. While gamers and those who require specialized apps would likely want to stay with x86 processors, Arm-powered devices have been slowly entering the market ever since Microsoft made a serious push with the Snapdragon-powered Copilot+ PCs in 2024. Qualcomm is even taking steps to make gaming on Windows on Arm better, while Nvidia's N1X is tipped to arrive on laptops this year. This is a major threat to the x86 system, with Intel and AMD banding together to help maintain the architecture's popularity. But if the two companies cannot meet the demand for their processors, then buyers might have no choice but to look elsewhere for their CPU needs. Follow Tom's Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.

Forget the RAM crisis -- storage prices are spiralling, and processors could be next, as gaming PC maker warns 'CPU shortage is getting more serious'

This is all we need -- CPUs could be like 'the memory chip situation' with price hikes * Processors could be in line for major price hikes * Rumor has it that Intel and AMD are increasing CPU prices due to a supply shortage, and this could end up as serious as the situation with RAM * Storage prices are also heading up sharply, and device makers are having to rethink plans -- with a handheld even getting canned this week due to pricing difficulties If you've not heard enough about supply woes and price hikes for various PC components, here's another bit of bad news: CPUs are now apparently in the firing line. PC Gamer flagged a report from Nikkei Asia, which observes that the market for processors is suffering "an average price hike of between 10% to 15%", which has hit both server and PC CPUs. This information has been provided by multiple sources, we're told, all singing the same unwelcome tune. Nikkei Asia also claims that according to these sources: "Intel and AMD have recently told clients they will increase prices for all series of CPUs from March and April, respectively." The lead time taken to ship processors that have been ordered is increasing, too, and by a large margin. Wait times have increased from a couple of weeks to a couple of months, or indeed more. One of the sources is an executive at a gaming PC manufacturer who says that the supply of CPUs is expected to become thinner on the ground in the second quarter of 2026. That exec said: "Intel and AMD have prioritized capacity for server CPUs, and the supply for PCs has become less ... What PC players can get in Q2 is much less than the volume we got in Q1." They added, "What we worry about is that even if we pay more, we still cannot get more. The CPU shortage is getting more serious day by day, no less than the memory chip situation." Analysis: AI crushes the hopes of consumers once again If you wanted a worrying statement about the situation with CPUs, I don't think you could get a more ominous utterance than the last sentence above. If we're going to start thinking about comparing processor supply levels to what's happened with memory chips, then that's the start of a very dark path that CPUs could be about to head down. Indeed, seemingly this is already happening, and the article is citing multiple sources to this effect. As you might guess, this is all about the AI boom. It's driving a huge need for computing power, and that isn't just about memory and storage for servers, but also processors. Meaning the drive for profits is leading to CPU makers prioritizing data center sales over consumers, just as with memory, because these are business decisions after all, and you go where you can make the most money. Unfortunately, the storage crisis is getting worse, too. This week, we've had news of the price of a 1TB external SSD from SanDisk tripling on the Apple store (via Gizmodo). And a high-end handheld has been effectively cancelled, with Ayaneo shutting down pre-orders of its Next 2 portable gaming device, as Kotaku reports. Thanks to the spiralling costs of storage and RAM, the Next 2 would've ended up costing some $4,000, which clearly isn't tenable. (Maybe the top-end Strix Halo Ryzen CPU was a factor here, too). Meanwhile, Asus has just treated us to a forecast of 25% to 30% price rises for its PCs in Taiwan over the next quarter, and that reality will surely be reflected globally to a large extent. It's a bleak picture that appears to be worsening. And it's also very odd that Intel has just revealed a couple of very wallet-friendly consumer CPUs with its refresh of Arrow Lake. How those low prices will work in this climate remains to be seen, although of course, so do the stock levels of said processors - they may only be produced in small quantities. The advice for those thinking of buying a new CPU for their PC would be to do so now, or in the near future, much as is the case for those mulling a laptop purchase. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button! And of course, you can also follow TechRadar on YouTube and TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too.

CPU shortage is 'getting more serious day by day, no less than the memory chip situation' according to an unnamed gaming PC company

A week ago or so, I flagged a report claiming that CPUs about to become the next chip class walloped by an AI-instigated shortage and spiralling prices. Now another source is making essentially the same claim but this time via at least two gaming PC maker. Nikkei Asia reports that a supply crunch is hitting the PC and server CPU markets, leading to "an average price hike of between 10% to 15%" with some CPU model prices spiking even higher. The outlet further claims that, "Intel and AMD have recently told clients they will increase prices for all series of CPUs from March and April, respectively." Lead times for CPU orders have likewise reportedly increased from one to two weeks to eight to 12 weeks, with some orders taking as long as six months to be filled. Notably, Nikkei Asia says, "an executive with a gaming PC company said that the shortage of CPUs is expected to become worse in the April-June quarter." It quotes the executive saying, "Intel and AMD have prioritized capacity for server CPUs, and the supply for PCs has become less ... what PC players can get in Q2 is much less than the volume we got in Q1." The same executive voiced fears that even with escalating prices, supplies will be tight. "What we worry about is that even if we pay more we still cannot get more. The CPU shortage is getting more serious day by day, no less than the memory chip situation," the source said. What's more, Nikkei Asia also spoke to Jose Liao, general manager of systems business at Asus. Liao said mid-range x86 chips will be subject to the most acute supply crunch, with Intel tilting production in favour of high-end chips. "The supply gap is indeed widening and is expected to continue," he said. Inevitably, the cause behind all this is said to be "surging" demand for AI computing. Nikkei Asia also says Intel commented that it has, "informed customers of planned pricing updates on select products, reflecting sustained demand, increased component and material costs, and evolving market dynamics." As I reported in the story linked above, Intel has spoken previously of its difficulties keeping up with demand, in part thanks to the yields at it own chip production fabs. As for AMD, it is constrained by production capacity at manufacturing partner TSMC. Arguably, what's slightly odd in all this from a gaming PC perspective is that Intel has just launched two new Arrow Lake Plus desktop CPUs and what's most remarkable about them is their notably low prices. The new Intel Core Ultra 7 270K Plus and Intel Core Ultra 5 250K Plus officially go on sale March 26 for $299 and $199, respectively. If nothing else, it will be interesting to see what those chips are actually listed at by retailers, and if it is MSRP how long that lasts.