Intel is focusing on the production of server CPUs, at the expense of personal computers

Sales of personal computers are plummeting as 2026 draws to a close. Intel senses the tide turning.

Unless you’ve spent the last two years in a cave deep in the Vercors, you’re no doubt aware that artificial intelligence is revolutionizing our lives. AI is creeping into every corner of our lives, but for the major players in the electronics and computing industries, the change is even more drastic and happening even faster. Most of the DRAM and NAND chips produced are being snapped up by the servers used to train and run artificial intelligence; prices for these two types of components are skyrocketing, triggering a chain reaction that’s affecting just about every sector.

Intel’s Irish factory is being expanded to produce more chips for servers. © Intel

Intel has always been one of the leading suppliers of processors for personal computers—the machines you and I use every day. With the skyrocketing prices of DRAM and NAND, PCs have become much more expensive, and sales have plummeted. That said, this isn’t necessarily a problem for Intel, which sees artificial intelligence as a way to bounce back: servers and other data centers also need processors to run, and Intel is making its intentions clear. During a conference call to discuss the U.S. company’s earnings, Lip-Bu Tan—Intel’s CEO—stated: “The industry continues to face one of the most significant supply shortages in its history, driven by unprecedented demand for superintelligence. In this context, I am pleased with the progress we made in the third quarter in increasing our server production. Nevertheless, I remain aware of the challenges we will face in the coming quarters to meet growing demand.”

Tom’s Hardware provides further insight into Intel’s new strategic direction and this increase in server chip production. Intel has already ramped up production of Xeon 6 “Granite Rapids” processors by retooling certain production lines at its Oregon facility. This factory was originally intended to be the spearhead for Intel’s new 18A process node, but part of it will now revert to the Intel 3 process in order to increase the supply of Xeon 6 processors. This will also involve expanding its Irish factory and installing new equipment at its Arizona facility. All in all, a major restructuring has already begun, but it will obviously take several months: such projects take time. Still, as far as innovation goes, we’ll have to wait and see: the Intel 18A, which was supposed to be Intel’s flagship, must now make way for the “old” Intel 3 process.