Intel (INTC) Chief Financial Officer Dave Zinsner said demand for processing units picked up in H2 of last year and is set to rise "pretty meaningfully" again in 2026 as artificial intelligence workloads expand, though supply constraints will persist.
Speaking Wednesday at a Morgan Stanley (MS) conference, Zinsner said customers are now seeking multiyear supply agreements, looking to lock in capacity over a three- to five-year horizon amid ongoing chip shortages.
Zinsner said Intel is relying on inventory to support Q1 shipments and expects conditions to improve in Q2 as more wafers come through production. Supply should increase each quarter, with a "relatively rapid improvement" as the year progresses, he said.
Intel shares rose 6.2% in Wednesday trading.
Price: 45.76, Change: +2.66, Percent Change: +6.17
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