Intel Corp. (NASDAQ:INTC) signaled sustained demand for its server processors amid the AI boom, even as production capacity remains tight.

AI-Driven Server Demand Pressures Supply

On Wednesday, the stock climbed after the chipmaker’s CFO said demand for its lucrative server processors remains strong.

CFO Dave Zinsner expects demand for Intel’s server processors to continue into next year as the server market expands following unit growth of more than 20% last year.

However, Intel and the broader semiconductor industry are struggling to meet demand due to manufacturing shortages, he says. Some of the company’s factories are operating at or above full capacity.

The surge in demand is tied to rapid growth in AI infrastructure, which requires a wide range of supporting processors, Bloomberg reported on Wednesday.

While this trend has helped Intel benefit from the AI boom, the company continues working to improve manufacturing efficiency as part of its broader turnaround efforts.

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