Intel, AMD sign long-term server CPU deals with Chinese clients as prices surge, sources say

The CPU shortage will be among the key topics likely to be addressed on Thursday when Intel reports its quarterly results.

CEO Lip-Bu Tan told analysts in April that demand "continues to run ahead of supply," especially for Xeon server CPUs. He also cited a multi-year deal with Google as one of several long-term contracts Intel signed in the first quarter.

AMD, due to report in early August, already raised its server CPU market forecast to more than $120 billion by 2030, citing strong demand related to agentic AI workloads.

China is one of the world's largest server markets, fuelled by rapid construction of data centre racks, AI computing clusters and national computing infrastructure.

The buildout has intensified competition for Intel and AMD processors, even as Chinese buyers face separate U.S. restrictions on access to the most advanced AI GPUs.