The demand for these processors has surged partly because of the increasing integration of AI in personal computers and a significant Windows update cycle, prompting customers to place additional orders. Intel initially projected to ship 40 million AI PC CPUs this year, but the company is now racing to exceed this target in response to the higher-than-expected demand.

Despite efforts to accelerate production and resolve packaging constraints, Intel's Client Computing Division anticipates its revenue for the second quarter to mirror the first quarter's performance, approximately $7.5 billion. This projection suggests no expected growth in revenue quarter-over-quarter, directly attributable to the packaging bottleneck.

Intel is actively working to enhance its wafer-level packaging capacity, aiming to mitigate these limitations by the latter half of the year. Successful expansion of these capabilities is expected to relieve the current supply constraints, potentially boosting the revenue of its client division as production scales up to meet ongoing demand.

Source: ithome