Intel and AMD face server hardware squeeze as AI demand surges

Surging demand for AI computing is pushing the semiconductor industry toward a record $1.3 trillion in revenue this year, but it’s also making one thing increasingly scarce: server hardware.

The strain can be felt throughout the entire AI supply chain, particularly regarding Intel’s and AMD’s x86 server CPUs provided to the cloud market. Research firms such as Gartner, IDC, and Trendforce all acknowledge that demand remains resilient, memory prices are climbing steadily, and supply chain issues are likely to persist until 2027.

Their predictions jointly reveal a much bigger picture. Gartner concentrates on the spike in chip sales and prices, IDC monitors server delivery activity, and TrendForce monitors the deliveries of components. Put this way, it can be assumed that the most important problem that the industry currently faces is not the growth of demand but rather getting hardware produced in enough quantity. The news comes in the wake of Nvidia‘s push into the CPU industry, which adds more challenges for both Intel and AMD, as Cryptopolitan reported earlier.

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