Intel's AI Chip Flop: Unexpected Demand for Older CPUs Creates Production Bottleneck

Intel's newly launched AI PC chips are underperforming, creating an unexpected shortage of production capacity for its older, cheaper chips. This news comes alongside announced layoffs and a poor financial report that sent the company's stock plummeting. Consumers are opting for less expensive previous-generation Raptor Lake chips over the pricier Lunar Lake and Meteor Lake AI models. The resulting shortage in Intel's 'Intel 7' process node capacity is expected to persist. This unexpected surge in demand for older chips points to a lack of a 'killer app' for AI in the PC market. Intel's Q1 revenue for its Client Computing Group (CCG) fell 8% year-over-year. AMD's upcoming financial results will provide further insight into the market's response.