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Intel's AI PC Chips Aren't Selling Well

Intel is grappling with an unexpected market shift as customers eschew its new AI-focused processors for cheaper previous-generation chips. The company revealed during its recent earnings call that demand for older Raptor Lake processors has surged while its newer, more expensive Lunar Lake and Meteor Lake AI PC chips struggle to gain traction. This surprising trend, first reported by Tom's Hardware, has created a production capacity shortage for Intel's 'Intel 7' process node that will "persist for the foreseeable future," despite the fact that current-generation chips utilize TSMC's newer nodes. "Customers are demanding system price points that consumers really want," explained Intel executive Michelle Johnston Holthaus, noting that economic concerns and tariffs have affected inventory decisions.