Intel Corp (NASDAQ:INTC) reported better-than-expected second-quarter results on Thursday, but warned that supply constraints across the AI ecosystem remain severe, with shortages expected to persist for the foreseeable future.
AI Infrastructure Bottlenecks Persist Intel said the industry continues to face severe AI infrastructure constraints despite earlier expectations that supply would improve this year.
"Industry is facing one of the most severe supply constraints in its history across leading-edge logic, silicon wafers, memory, and substrates," CEO Lip-Bu Tan told analysts during the earnings call, adding that "these shortages will persist for the foreseeable future." The company said artificial intelligence demand continues to exceed available supply across the ecosystem, making supply one of the biggest constraints on meeting customer demand.
"Memory has become the biggest supply constraint challenge, and we're collaborating with the three major memory vendors," Lip-Bu Tan added.
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