Both Intel and AMD have notified Chinese customers of supply shortages affecting their respective server CPUs, according to a Reuters report, with up to a six-month lead time on Intel chips.

While much noise has been made regarding AI GPUs and their impact on the memory market in recent months, server CPUs are also experiencing heightened demand as the AI boom continues to expand.

Intel's Chinese market alone is stated to account for 20% of its overall revenue. According to sources from Reuters, Intel is facing a substantial backlog of unfulfilled orders for its fourth and fifth-generation Xeon server chips and is currently rationing deliveries.