"On January 22, Intel released its 2025 fourth-quarter earnings and revealed that profits from its AI and data center products had increased by about nine percent for the quarter and five percent for the year. Meanwhile, its consumer PC parts division was down seven percent for the quarter and around 3 percent for the year. This data makes it clear that Intel is making more money from selling AI datacenters the valuable chips and parts they need to operate,"
"As reported by Ars Technica, Intel is struggling to make and buy enough chips to meet the massive demand. "Obviously, we're shifting as much as we can over to data centers to meet the high demand, but we can't completely vacate the client market," said Zinser. "So we're trying to support both as best we can and obviously work our way out of this supply issue.""
Intel is increasing focus on AI and data center products after reporting higher profits in those segments while consumer PC part revenue declined. The company faces shortages in chip production and procurement that drive a shift of available inventory toward the more profitable datacenter business. Intel's CFO said the company will shift as much as possible to data centers while still attempting to support the client market. The supply constraints are expected to cause shortages of upcoming Panther Lake CPUs and push processor prices higher, potentially increasing prices for competing CPUs and making PC builds costlier.
Read at Kotaku
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