Intel CPU shortage could strengthen AMD’s server push

Demand for server CPUs is rising as agentic AI and inference workloads put more pressure on data center infrastructure. AMD expects the server CPU total addressable market to grow at a compound annual growth rate of more than 50% through 2030 and reach $220 billion in revenue in 2030.

Intel CEO Lip-Bu Tan said the company can meet only 50% of customer demand for CPUs, signaling tight supply across the x86 server market. Tom’s Hardware reported that Intel is poised to implement a 10% price hike in March 2027, after already raising prices this year, with AMD also expected to follow.

Intel’s revenue in Q2 increased 25% year over year to $16.1 billion, helped by a 59% gain in its data center and AI segment, while non-GAAP earnings per share improved to $0.42 from a loss of $0.10 a year earlier. AMD’s position appears stronger, with Mercury Research reporting its server CPU market share rose to 34.5% in Q2 from 27.3% a year earlier, and the company planning more capacity with TSMC while projecting server revenue growth of over 80% in the second half of 2026 and over 70% in 2027.