AI Server Demand Takes Priority as Older CPUs Return to PCs

As agentic AI surges in 2026, Intel and AMD are prioritizing advanced-process capacity for server CPUs as they compete for the high-margin AI data-center market. Server chips are far more profitable than PC processors, and the strategy has caused a severe shortage of consumer PC CPUs. The reallocation has delayed wider adoption of AI PCs and made five-year-old chips mainstream again in new computers, with far-reaching consequences for the supply chain.

Susquehanna said in July 2026 that the share of newly assembled laptops using older Tiger Lake chips had risen by 2%, while the market share of newer Arrow Lake chips remained stalled at 10%. As capacity constraints lifted chipmakers’ profits, the research firm raised its price targets for AMD and Intel in April to $375 and $80, respectively. But PC processor lead times have also lengthened by several months, offering consumers limited near-term benefits.