Shares of Intel Corporation (NASDAQ:INTC) climbed about 4% on Wednesday, while Advanced Micro Devices (NASDAQ:AMD) advanced roughly 2.5%, following a report that both companies have notified customers of upcoming price increases for their central processing units.
According to Nikkei Asia, Intel and AMD have informed clients that they intend to raise prices across their entire CPU product portfolios, with Intel expected to implement increases beginning in March and AMD in April.
Sources cited in the report said CPU prices have already been raised several times since the start of the year, with average increases ranging from 10% to 15%, and some products experiencing even steeper adjustments.
The price hikes come amid tightening supply conditions in the CPU market. Delivery lead times have reportedly expanded significantly, rising from the previous one to two weeks to roughly eight to twelve weeks on average, with some orders facing delays of up to six months.
The constrained supply is adding pressure for server manufacturers, who are grappling with reduced CPU availability from both Intel and AMD.