CPU Shortage Pushes Intel and AMD Prices Higher
A deepening shortage of central processing units from Intel and AMD is putting fresh pressure on PC and server manufacturers that are already dealing with a severe memory chip crunch. What’s unfolding is a broader supply crisis that’s hitting multiple parts of the technology sector at once.
Major PC brands, including HP and Dell, began seeing a growing mismatch between CPU demand and actual supply by late February. Since then, the problem has become much more serious. CPU prices have been raised several times since the start of 2026, with average increases of 10% to 15%. At the same time, delivery lead times have stretched far beyond normal levels, moving from the usual one to two weeks to around eight to twelve weeks on average, and in extreme cases reaching as long as six months.
Why Intel and AMD CPU Supply Is Tightening
AI Infrastructure Demand Is Taking More Chip Capacity
The shortage reflects a broader shift in the semiconductor industry. Demand for AI infrastructure is absorbing more of the world’s chip production capacity, leaving less room for other products. Intel and AMD have both informed customers about price increases across their CPU lineups, with Intel’s changes taking effect in March and AMD’s in April.
Intel Faces Manufacturing and Substrate Constraints
Intel is dealing with manufacturing yield issues at its own fabrication plants. On top of that, it is also facing limits in chip substrate supply. These constraints are making it harder for the company to fully meet demand across its CPU business.
Intel’s CEO, Lip-Bu Tan, said in January that supply limits are reducing the company’s ability to take full advantage of opportunities in its core markets. An Intel spokesperson also said the company remains committed to entry-level PCs and other client segments, while prioritizing production of high-performance CPUs to support rising AI and infrastructure demand.
AMD Competes for Foundry Capacity
AMD relies entirely on outsourced manufacturing through foundries such as TSMC and Samsung. That means it must compete for production capacity with AI chip makers, including Nvidia and Google.
AMD CEO Lisa Su said the company is seeing strong growth in server CPU demand and is working to improve supply capabilities. Even so, the pressure on foundry capacity is adding to the strain on CPU availability.
Mid-Range x86 CPUs Face the Biggest Supply Gap
According to Jose Liao, general manager of Asus’s system business, the largest supply gaps are showing up in mid-range x86 CPUs. That’s because Intel and AMD are placing more focus on higher-end chips.
Liao said the supply gap is widening and is expected to continue. That matters because mid-range processors play a major role in mainstream PC production, so shortages in this part of the market can quickly ripple through the broader hardware supply chain.
PC and Server Makers Are Getting Hit From Both Sides
The CPU Crunch Is Colliding With the Memory Chip Shortage
The CPU shortage is arriving at a time when the electronics industry is already under pressure from a major memory chip shortage. Together, the two problems are creating an even more difficult environment for device makers.
Data centers are expected to consume 70% of all memory chips produced in 2026, which is reducing supply for consumer devices. Micron CEO Sanjay Mehrotra said tight DRAM and NAND conditions will continue through and beyond 2026. Apple CEO Tim Cook also warned in January earnings that rising memory prices would increase pressure on margins.
A Compounding Supply Crisis Across Technology
This combination of CPU scarcity and memory tightness is creating a double blow across the tech ecosystem. PC and server manufacturers are not only dealing with higher component costs, but also much longer wait times and fewer available parts.
Industry executives expect conditions to worsen further in the April-to-June quarter. One gaming PC executive said that at this point, money cannot buy stock, underlining how severe the supply shortage has become.
Arm-Based PCs Gain More Attention as x86 Supply Tightens
The pressure on CPU supply is also accelerating changes in the PC market. Suppliers serving Asus, HP, and Dell said their customers are putting more resources into designing computers that use Arm-based processors in 2026.
At Asus, about 30% of Copilot AI PCs now use Arm-based processors, up from roughly 20% at the end of the previous year. That share is expected to keep increasing as companies look for ways to reduce exposure to shortages in x86 CPU supply.
What the Intel and AMD CPU Shortage Means for the Market
The current supply crunch is affecting pricing, delivery schedules, product planning, and platform choices all at once. For PC and server makers, the issue is no longer limited to one type of chip. It has become a broader capacity problem shaped by AI demand, manufacturing constraints, substrate limits, and competition for foundry space.
With higher prices, longer lead times, and signs that supply gaps may keep widening, the shortage is reshaping how hardware companies plan product development and secure component supply.