New York, Feb 6, 2026, 07:47 EST — Premarket
- Intel shares slip in premarket trading following a Reuters report highlighting extended delivery lead times for server CPUs to China
- Some Xeon shipments might face delays of up to six months, customers were warned; meanwhile, prices in China reportedly jumped over 10%
- Investors are focused on whether Intel will ease its tight inventory by the second quarter
Intel Corp has informed some Chinese customers that delivery times for certain server CPUs could stretch to six months, according to sources familiar with the delays. This suggests AI-driven demand is now affecting more than just the top accelerators. Intel shares slipped 0.6% to $48.24 in premarket trading. Source: 1
Why it matters now: China remains a crucial market for Intel, which is relying heavily on its server segment as it attempts to regain lost ground in data centers. Lengthy delays could prompt customers to postpone projects or turn to other suppliers, despite steady demand driven by the wider AI infrastructure expansion.
The flip side is pricing. With supply remaining tight, Intel can keep prices firmer on certain server components, but investors often fret more over missed shipments when lead times drag on.
The report noted that Intel’s fourth- and fifth-generation Xeon server chips are especially scarce in China, with deliveries rationed and a backlog piling up. A source familiar with the matter said Intel server products in China now carry a roughly “10% higher” price tag on average, though contract terms cause some variation.
According to the report, AMD has warned clients about supply shortages, extending lead times on certain products to eight to 10 weeks. AMD shares fell 3.9% in premarket trading.
Intel pointed to the fast uptake of AI driving solid demand for “traditional compute,” adding that inventory is at its lowest in Q1. The company said it’s tackling the issue head-on and anticipates supply to improve from Q2 through 2026. AMD highlighted its expanded supply capacity and emphasized its manufacturing tie-up with TSMC.
The squeeze stems from multiple factors. Intel has struggled with manufacturing yield issues during its production ramp-up, according to the report. Meanwhile, TSMC’s busy AI-focused schedule has cut into capacity for certain CPU runs. At the same time, a shortage of memory chips—another crucial server part—has thrown a wrench into builds, prompting some customers to accelerate their orders.
The memory shortage is already forcing tough decisions in consumer electronics. “This is the biggest question for the industry now,” said IDC senior research director Nabila Popal this week, as companies debate whether to pass on higher component costs. Source: 2
Intel faces a clear risk: if supply doesn’t ease by Q2, some buyers might rethink their system designs, delay deployments, or shift more business to AMD. That could squeeze Intel’s share in a market where lead times can be just as crucial as performance scores.
Traders are watching closely for updates on Intel’s inventory reduction schedule and whether higher prices are holding up without hurting demand. If CPU shortages start to impact enterprise builds more broadly, it could keep the spotlight on the sector.
Intel’s next major update arrives with its Q1 earnings report, set for April 23. This date comes from Investing.com’s earnings calendar. Source: 3
