Intel announced a 10% price increase for its PC processors, effective around October 5. This marks the third consecutive price hike since late 2025, following adjustments in Q1 2026 and July 2026. The company attributes these changes to rising supply-chain costs and steady demand from data centers.
Following the news, Intel shares rose approximately 3% in premarket trading on September 8, reaching $98.64. Under CEO Lip-Bu Tan, the company is shifting its strategy to prioritize gross margin growth over market share expansion. This approach includes plans to wind down the low-margin Small Core processor line.
The company is also considering staff reductions of 5 to 10%, while simultaneously hiring in higher-priority sectors. In Q2 2026, Intel saw a 48% year-on-year increase in average selling prices for server CPUs in certain segments, driven by demand for AI and server-related products.
The broader semiconductor industry is experiencing similar shifts, with Qualcomm raising its chip prices on September 1. Intel's strategy comes as the PC market is forecasted to decline in 2027, forcing the company to focus on profitability despite a contracting addressable market.
