The outbreak of generative AI has not only ignited the GPU market, but also brought the CPU back to the core battlefield of the semiconductor industry. Recently, there has been a serious imbalance between supply and demand in the global CPU market, and terminal prices have continued to rise. The core reason is the structural surge in CPU demand brought about by agent-based AI.
Intel recently disclosed that AI is rapidly moving from training to reasoning and agent-based (Agentic AI) applications . In the previous AI training stage, the ratio of GPU to CPU usage in the data center was approximately 8:1. Now with the rise of agent-based AI, this ratio has dropped to 4:1, and may even reach 1:1 or even reverse in the future.
The core value of CPU in data scheduling, memory management and system collaboration has been greatly improved, and the server CPU market is experiencing strong growth. Intel management bluntly stated that the current demand for CPUs far exceeds supply, and insufficient production capacity has caused the company to lose billions of dollars in revenue opportunities.
In order to lock in the high-value track, Intel will prioritize its limited production capacity to supply high-priced Xeon server processors and high-end PC products. The supply of mid- to low-end consumer-grade CPUs and Chromebook platform CPUs has been significantly compressed.
In the PC assembly market, Intel's market share has dropped from nearly 90% at its peak to evenly matched with AMD. The Chromebook platform CPU delivery period has even been extended to one year, and overall shipments in 2026 are expected to drop to 18 million units due to shortages.
The gap between supply and demand continues to expand, directly driving CPU prices upward. Supply chain information shows that Intel has raised CPU prices twice since the end of 2025. The first round of increase was about 10% in December 2025, and another increase of about 10% for some models in March 2026 . The increase for high-end products is even higher.
AMD has also followed up on the price increase strategy and quickly seized market gaps. Its server CPU market share has approached 50%.
MediaTek, which has been deeply involved in the Chromebook platform for many years, has become the big winner of this round of shortages. Its Chromebook processor shipments are expected to increase by more than 40% year-on-year in 2026, and shipments of its main model MK8189 will reach 7 million units, almost tying Intel's products of the same level.
Intel is currently easing the pressure by improving the yield rate of the 18A process and increasing capital expenditures to expand production. Revenue in the second quarter of 2026 is expected to hit double-digit growth for the first time in six years. However, the industry's short-term supply and demand imbalance and high prices are difficult to fundamentally change.
