Intel’s CPU supply is recovering just in time for the agentic AI wave | usagoldmines.com

Although the supply of Intel CPUs is improving, demand is still outstripping supply, Intel executives told Wall Street analysts Tuesday afternoon. The company is also planning for PC demand to fall, driven by component shortages that are driving prices higher.

In January, Intel reported shortages of both PC and server processors and told investors then that it will be prioritizing silicon for higher-margin server products. That went hand in hand with reports of CPU shortages, period, including server makers.

On Tuesday, Intel executives said those shortages remain, but the company is beginning to ramp up its output and will continue to do so throughout the year.

“Supply will go up in the second quarter,” Intel chief financial officer David Zinsner told Wall Street analysts in its first quarter 2026 conference call. “It is going to go up every quarter now going forward. We were certainly at our lowest point in terms of supply in the first quarter relative to the rest of the year.”

Intel wouldn’t say how much money it had left on the table because of the shortages, but chief executive Lip-Bu Tan said it was significant: “Let us just say it starts with a ‘b.’”

Intel reported $13.6 billion in revenue against a net loss of $3.7 billion on $5.3 billion of charges. Revenue in Intel’s Client Computing Business, which governs its PC CPU shipments, was $7.7 billion, down 6 percent from the fourth quarter but better than the company’s expectations. Intel’s Core Ultra Series 3 (Panther Lake) was the company’s best processor launch in five years, the company said, certainly not hurt by our extremely favorable review of the Panther Lake chip.

Intel’s future is being buffeted by conflicting forces. On one hand, the company says that near-term demand is strong, especially for Panther Lake and its cousin Wildcat Lake (aka the Intel Core Series 3). Likewise, the AI pendulum is beginning to swing back, away from GPUs and back to CPUs, as control of agentic AI becomes important.

“One statistic we look at is the ratio of CPUs to GPUs,” Zinsner said. “If you look at training solutions, they are generally running seven to eight GPUs to one CPU. As we look into inference, it is probably three to four to one. As you get into agentic and multi-agent, it is potentially even flipping the other direction a little bit.”

However, Intel is still affected by rising costs across the board, especially in memory and storage. “Constraints and rising prices around key components like memory, wafers, and substrates are driving higher costs that could impact demand for our product at some point in the year,” Zinsner said. “We are prudently planning for PC demand to weaken in the second half of the year and expect the full-year PC unit TAM to be down low double-digit percent, in line with industry peers and experts.”

Unfortunately, little has changed for PC builders everywhere. But at least Intel understands the problem.