Intel · AMD · Data Center · Tom's Hardware
Intel shifts production capacity from consumer to server CPUs in face of 'record' AI demand
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Although the consumer PC market is shrinking and will continue to shrink in the coming quarters, Intel is confident that the overwhelming demand from the AI industry for everything that can compute or store data will offset declines in the client space.
Key facts
- The company's Data Center and AI (DCAI) business generated $7.3 billion in revenue in the third quarter of 2026, up 17% sequentially and nearly 80% year-over-year
- Intel expects its capital expenditure (CapEx) budget to reach approximately $20 billion in 2026 and increase significantly in 2027 (though it did not reveal any firm numbers)
- According to the company, Intel 3 manufacturing costs have declined by approximately 15% since the first quarter of 2026
- The company already uses its EMIB technology to connect multiple compute dies in Granite Rapids processors, while its newer Clearwater Forest Xeons combine EMIB with Foveros Direct 3D and hybrid
Summary
Intel VP Robert Hallock sets Nova Lake expectations, teases return to Raptor Lake for DDR4 platforms. Benchmarking AMD's BC-250, offering Steam Machine-like performance at half the price. AMD splits Zen 7 into three EPYC families for 2028 and starts selling server CPUs by the agent. "The industry continues to navigate one of the most significant supply shortages in history, driven by the unprecedented demand for Super Intelligence," said Lip-Bu Tan, chief executive of Intel, during the company's earnings call.