AMD and Intel May Increase Server CPU Prices by Up to 15% Due to Hyperscaler Buildout Draining Inventory

AMD and Intel May Increase Server CPU Prices by Up to 15% Due to Hyperscaler Buildout Draining Inventory

Recent reports indicate that both AMD and Intel are contemplating a price hike of up to 15% for server CPUs. This potential increase comes as both companies have exhausted their current inventories, with projections showing that they will not have additional stock available until next year.

Hyperscalers Transitioning to Latest Server CPU Generations: A Golden Opportunity for AMD and Intel

The proliferation of artificial intelligence has created substantial demand for server CPUs. According to a recent analysis by KeyBanc, linked by industry commentator Jukan, AMD and Intel have effectively sold out their server CPU inventories for the remainder of the year. A significant portion of this demand stems from hyperscalers seeking to incorporate the latest server CPUs into their existing infrastructure, leading to a surge in demand over the past few quarters.

A key opportunity for server CPU manufacturers lies in the upgrade cycle currently underway among hyperscalers. This cycle involves the replacement of older CPU architectures with next-generation models such as AMD’s upcoming 5th-gen EPYC ‘Turin’ CPUs and Intel’s Xeon Granite Rapids. Notably, server CPU shipments are forecasted to increase by as much as 25% this year, signaling vast potential for growth for manufacturers like AMD and Intel in the data center (DC) segment.

Close-up of AMD EPYC chip and a chip labeled with 'Zen 6' on a blue circuit background.

Throughout this year, AMD has been particularly successful in the server market, driven by robust interest in its EPYC offerings. However, estimates from KeyBanc suggest a promising revenue outlook for all players involved in the market. Both AMD and Intel are launching aggressive strategies with their next-generation server CPU products. Notably, AMD is set to release its EPYC Venice ‘2nm’ CPUs in the latter half of 2026, a launch that could significantly disrupt the current landscape.

For both companies, the data center segment represents a critical opportunity to leverage the current hyperscaler buildout. In particular, Intel, whose AI accelerator business is trailing behind competitors, has a chance to enhance its presence among hyperscalers through its server CPU offerings.

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