“Capacity constraints, especially on Intel 10 and Intel 7 [Intel’s semiconductor manufacturing process], limited our ability to fully meet demand in Q3 for both data center and client products,” said Zinsner, adding that Intel isn’t about to add capacity to Intel 10 and 7 when it has moved beyond those nodes.
“Given the current tight capacity environment, which we expect to persist into 2026, we are working closely with customers to maximize our available output, including adjusting pricing and mix to shift demand towards products where we have supply and they have demand,” said Zinsner.
For that reason, Zinzner projects that the fourth quarter will be roughly flat versus the third quarter in terms of revenue. “We expect Intel products up modestly sequentially but below customer demand as we continue to navigate supply environment,” said Zinsner. “We expect CCG to be down modestly and PC AI to be up strongly sequentially as we prioritize wafer capacity for server shipments over entry-level client parts.”
