Demand for Intel's processors is apparently there, but the supply is not
Intel reported its earnings for the fourth quarter of 2025 yesterday, and the news both for the quarter and for the year was mixed: year-over-year revenue was down nearly imperceptibly, from $53.1 billion to $52.9 billion, while revenue for the quarter was down about four percent, from $14.3 billion last year to $13.7 billion this year. (That number was, nevertheless, on the high end of Intel's guidance for the quarter, which ranged from $12.8 to $13.8 billion.)
Diving deeper into the numbers makes it clear exactly where money is being made and lost: Intel's data center and AI products were up 9 percent for the quarter and 5 percent for the year, while its client computing group (which sells Core processors, Arc GPUs, and other consumer products) was down 7 percent for the quarter and 3 percent for the year.
That knowledge makes it slightly easier to understand the bind that company executives talked about on Intel's earnings call (as transcribed by Investing.com). In short, Intel is having trouble making (and buying) enough chips to meet demand, and it makes more sense to allocate the chips it can make to the divisions that are actually making money—which means that we could see shortages of or higher prices for consumer processors, just as Intel is gearing up to launch the promising Core Ultra Series 3 processors (codenamed Panther Lake).