Intel is running out of processors designed for affordable laptops at a time when rising component costs are making it harder for PC makers to keep their devices competitively priced. The company's budget-focused Wildcat Lake chips are now sold out, with demand exceeding the supply Intel can currently provide.Intel CEO Lip-Bu Tan confirmed the strong demand during the company's Q3 2026 earnings call.
CFO David Zinsner also said that the processors had sold out, pointing to the growing interest in chips that help manufacturers keep laptop production costs under control."We've seen significant growth in Wildcat Lake. It's coming exactly at the right time because it's cost-optimised and we are seeing a lot of focus in that regard," Zinsner said.The processors are finding their way into relatively affordable Windows laptops, including the Dell XPS 13 and HP OmniBook 5 14.
These devices offer lower starting prices, but some configurations come with just 8GB of RAM. That could be a limitation for users who need to run multiple applications or handle heavier workloads.
The demand for budget processors comes as the PC industry deals with rising memory prices. RAM has become more expensive as manufacturers struggle to meet growing requirements from AI companies building data centres.
This leaves laptop makers with fewer options to absorb higher component costs while keeping prices in check. Memory shortage could continue for years, chipmakers warnIntel does not expect the memory supply situation to get better in 2027.
During the earnings call, Zinsner said the company was not optimistic about next year's supply conditions. He added that it would have to wait until 2028 to see whether there was any improvement.
Other major memory manufacturers have offered similarly cautious assessments, with some expecting the shortage to last even longer.Micron recently warned that the gap between memory supply and demand could become wider in 2027 and 2028 than it was this year. Its CEO Sanjay Mehrotra also revealed that more than 75 per cent of the company's planned 2027 output was already committed to customers.
SK Hynix has gone further, saying its DRAM and high-bandwidth memory supplies are sold out through 2029, according to Reuters. The company expects the shortage to continue until 2030.
Samsung, meanwhile, expects AI-related demand to exceed industry memory supply in 2027 and said tight conditions could continue through 2028.The growing requirements of AI infrastructure companies are putting pressure on the wider semiconductor supply chain. Although manufacturers are investing in new production facilities, increasing output takes time.Intel acknowledges that the PC industry is dealing with one of its most difficult supply situations, with Tan attributing the shortage to unprecedented demand for AI computing.
However, the company remains hopeful about the future of personal computers."We do think the PC is going to go through a renaissance despite this," Zinsner said.- Ends