Intel's AI PC chip demand stumbles while older processors thrive amid tariff concerns

In a nutshell: Intel is discovering what most of us already knew: people aren't willing to pay more for CPUs just because they have added AI abilities. Team Blue said sales of its cheaper previous-generation Raptor Lake processors are seeing high demand, a contrast to the Lunar Lake and Meteor Lake chips with their AI smarts. It seems the looming prospect of Trump's tariffs causing economic disruption is playing a part, pushing consumers toward frugality. Intel revealed during its recent earnings call that its Intel 7 process node production capacity was facing shortages, something it predicted would "persist for the foreseeable future." Intel's more recent generations of processors – Meteor, Arrow, and Lunar Lake – use TSMC's newer process nodes, so what's causing the problems? The company said the shortage of 7nm production capacity was due to an unexpected surge in demand for its N-1 and N-2 products: Raptor Lake and Alder Lake. A survey of more than 20,000 tech enthusiasts last ... Read full article.