Intel has decided to temporarily push consumer processors into the background in order to meet rapidly growing demand for Xeon server chips for data centers and artificial intelligence systems. As The Register reports, this was stated by Intel Chief Financial Officer David Zinsner during the discussion of the company\u2019s fourth-quarter financial results.<\/p>\n
According to the executive, Intel misjudged market dynamics. About six months ago, major customers were signaling plans to reduce purchases of high-core-count processors, but in the third and fourth quarters demand for Xeon surged sharply. In particular, the Xeon 6 platform is widely used as a host processor in GPU systems based on Nvidia DGX B200 and B300, as well as in many servers with AMD Instinct accelerators.<\/p>\n
To address the shortage, Intel has begun reallocating manufacturing capacity from client chips to server processors. At the same time, the company says it does not plan to abandon the consumer segment entirely. Its main focus there is shifting toward the mid-range and premium segments, while production of budget processors may be limited. This means that low-cost PCs based on entry-level Intel chips could become less available.<\/p>\n
The decision has also been influenced by the situation in the memory market. Major manufacturers\u2014Micron, SK Hynix, and Samsung\u2014are likewise redirecting advanced production lines toward DRAM and HBM for AI servers. Against this backdrop, prices for consumer memory have more than tripled in recent months, further pressuring the PC market and reducing the appeal of mass-market configurations.<\/p>\n
Zinsner noted that capacity constraints should begin to ease starting in the second quarter of the financial year. Intel expects improvements from higher yields, the launch of additional equipment, and expanded production on the Intel 7, Intel 3, and Intel 18A process nodes. The ramp-up of next-generation Core Ultra Panther Lake processors, which make greater use of the 18A process, is also expected to partially improve the situation.<\/p>\n
For the first quarter of 2026, Intel forecasts revenue in the range of $11.7\u201312.7 billion, betting that the gradual easing of manufacturing constraints will allow it to better capitalize on rising demand for server solutions.<\/p>\n","protected":false},"featured_media":151033,"menu_order":0,"template":"","newscat":[9],"newstag":[],"issues":[],"class_list":["post-151032","news","type-news","status-publish","has-post-thumbnail","hentry","newscat-novosti"],"_links":{"self":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news\/151032","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media\/151033"}],"wp:attachment":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media?parent=151032"}],"wp:term":[{"taxonomy":"newscat","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newscat?post=151032"},{"taxonomy":"newstag","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newstag?post=151032"},{"taxonomy":"issues","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/issues?post=151032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}