Worsening CPU Supply Constraints Impact PC Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 25 2026
0mins
Should l Buy AMD?
Source: seekingalpha
- Supply Shortage Intensifies: The worsening supply constraints from Intel and AMD have led PC and server manufacturers to face extended delivery times, with average wait times now stretching from 1-2 weeks to 8-12 weeks, and in some cases, up to six months, severely disrupting market supply-demand balance.
- Price Increase Trend: Due to the supply shortage, CPU quote prices have risen by 10% to 15%, and both Intel and AMD plan to raise prices for all CPU series in March and April, reflecting sustained market demand and rising costs.
- Market Demand Shift: The growing demand for AI infrastructure has exacerbated the memory chip shortage, forcing PC manufacturers like HP and Dell to pivot towards Arm-based processors in their new designs to cope with the supply shortfalls from Intel and AMD.
- Focus on High-End Products: Intel and AMD are concentrating more resources on producing high-end chips, resulting in a widening supply gap for mid-range X-86 CPUs, a trend expected to continue, potentially impacting product diversity and competitiveness in the overall market.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 210.210
Low
210.00
Averages
289.13
High
377.00
Current: 210.210
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- New Product Launch: AMD will start shipping its MI450 GPUs in the second half of 2023, expected to deliver 36 times the performance of the MI400 and MI355, further solidifying its competitive position in the data center GPU market.
- Strong Customer Demand: Major clients like Meta and OpenAI plan to deploy 6 gigawatts of computing capacity over the next few years, with these deals potentially worth tens of billions of dollars, showcasing robust demand for AMD's high-performance computing solutions.
- Resilient Market Performance: Despite a 5% drop in the overall market in March, AMD's stock rose by 2.5%, reflecting investor confidence in the company's future growth, particularly against the backdrop of surging demand for AI chips.
See More
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- Data Center Revenue Surge: AMD achieved a record $16.6 billion in revenue for its data center business in 2025, marking a 32% year-over-year increase and accounting for nearly half of the company's total revenue, underscoring its critical role and growth potential in the market.
- New Product Launch: AMD is set to release its MI450 GPUs in the second half of 2023, which are expected to deliver 36 times the performance of previous generations like the MI400 and MI355, while also boasting 50% more memory capacity than Nvidia's upcoming Vera Rubin GPU system, enhancing its competitive edge in AI.
- Strong Customer Demand: Meta and OpenAI will be among the first to receive the MI450, planning to deploy 6 gigawatts of computing capacity over the next few years, with potential deals worth tens of billions of dollars, further solidifying AMD's market position.
- Optimistic Future Outlook: CEO Lisa Su anticipates an average growth of 60% for the data center business over the next three to five years, and despite financial risks associated with OpenAI's commitments, AMD's diverse customer base is expected to support sustained growth.
See More
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- Technological Innovation: Arm's announcement to design its own CPU chips leverages its technological expertise in smartphones, addressing the demand for power efficiency and high core counts, thus positioning itself favorably in the agentic AI market.
- Industry Leadership: AMD holds a leading position in the data center CPU market, generating $16.6 billion in revenue last year, with expectations to further expand its market share amid the rapid growth of AI infrastructure.
- Growth Prospects: AMD's new Venice architecture, featuring innovative chiplet designs, allows for more cores in its CPUs to meet agentic AI demands, and combined with its partnerships with major GPU players, is expected to drive strong growth in the future.
See More
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- Massive Market Opportunity: Arm Holdings anticipates the data center CPU market will grow to $100 billion by 2031, aiming to capture $15 billion in revenue from its new CPU chips, highlighting its strong potential in the rapidly evolving AI infrastructure market.
- Leading Technological Innovation: Arm's announcement to design its own CPU chips leverages its intellectual property expertise from the smartphone sector, enhancing its competitiveness in the growing demand for AI agents, particularly in power efficiency and core counts.
- AMD's Market Leadership: AMD has established itself as a leader in the data center CPU market, generating $16.6 billion in revenue last year, and is poised to capture a larger share of the projected $100 billion market, especially through its new Venice architecture and robust GPU partnerships.
- Future Growth Prospects: As AI infrastructure rapidly develops, CPU manufacturers are set to become the next big beneficiaries, with both Arm and AMD possessing strong technological foundations and market demand, indicating potential upward movement in their stock prices.
See More
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- Technological Innovation: Arm's announcement to design its own CPU chips leverages its leading technology in smartphones, addressing the high core count and low power consumption needs of AI agents, thereby enhancing its competitive position.
- Industry Leadership: AMD generated $16.6 billion in data center revenue last year, and with its new Venice architecture and chiplet design, it is poised to capture a larger share of the projected $100 billion server CPU market, further solidifying its leadership.
- Strategic Partnerships: AMD's agreements with two major GPU partners, each valued at over $100 billion, will not only drive revenue growth but also lay a foundation for its long-term development in the AI infrastructure space.
See More
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- Nvidia's Market Leadership: Nvidia has emerged as a leader in AI infrastructure, with revenue projected to soar from $17 billion in fiscal 2021 to $216 billion in fiscal 2026, achieving a market cap exceeding $4 trillion, underscoring its competitive strength in the AI sector.
- AMD's Strategic Opportunities: AMD's two significant GPU deals with OpenAI and Meta are expected to generate hundreds of millions in new revenue, while also promoting the adoption of its ROCm software, enhancing its competitive position in the inference market.
- Growth Potential in Data Center CPUs: As AI agents gain traction, AMD's leadership in the data center CPU market positions it to benefit from a surge in demand for these chips, making it a crucial component of AI infrastructure.
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See More
