Core Ultra Series 3 launch may be hampered by chip shortages, says Intel

Intel recently shared its fourth-quarter earnings report for 2025, revealing a mixed performance. The company's annual revenue saw a slight dip, decreasing from $53.1 billion to $52.9 billion, while quarterly revenue dropped by approximately four percent, from $14.3 billion to $13.7 billion. Despite this decline, the quarterly figures fell within Intel's projected range of $12.8 to $13.8 billion, reflecting a somewhat resilient outlook. A closer look at the financial details shows a clear divide in performance across its divisions. Intel's data center and AI products experienced a notable increase, with revenues up by nine percent for the quarter and five percent for the year. Conversely, the client computing group, which includes Core processors and Arc GPUs, faced a downturn, with a seven percent decline for the quarter and three percent for the year. During the earnings call, executives highlighted significant challenges in meeting chip demand. Intel has been prioritizing its internal wafer supply for data center products, which is impacting the availability of consumer processors. As a result, the upcoming Core Ultra Series 3 processors, codenamed Panther Lake, may encounter shortages or price increases at launch. CFO David Zinsner confirmed that while shifts are being made to focus more on data center needs, the company is still committed to the consumer market. Furthermore, yields for Intel's new 18A process technology are reportedly improving but have not yet reached desired levels. CEO Lip-Bu Tan acknowledged that, while the yields align with internal expectations, they remain below his ideal benchmarks. This situation underscores the complex landscape Intel navigates as it strives to balance supply with consumer demand amidst ongoing market pressures.