Intel Can Supply Only About Half of What Its Customers Want. That's a Better Problem Than It Sounds.

Intel CEO Lip-Bu Tan revealed at Splunk's .conf26 conference that Intel's processors are currently only able to meet approximately half of the demand from its customers. This issue stems from a surge in demand for central processing units (CPUs) to support artificial intelligence (AI) inference, which involves the work AI models and agents perform after being trained.

Unlike the focus on graphics chips in AI discussions, Tan emphasized the significant role CPUs play in this process. Intel's shares have seen a 6% increase this week, trading around $109, which is more than triple their price from a year ago.

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