AMD Joins Intel in Raising PC CPU Prices by Up to 15%

Last week, we reported that Intel is preparing to increase CPU prices by 10% across its client PC sector. However, a new report from Nikkei Asia suggests that AMD is also joining this trend, with plans for a PC CPU price hike as well. Reportedly, AMD Ryzen CPUs could see prices rise by 15% compared to the same time last year, when prices were typically around the MSRP at retailers. Now, as CPU demand has depleted inventories and the focus remains on server and data center CPU production, capacity for the client segment has been significantly reduced, leading to little to no inventory for PC enthusiasts. Large OEMs like HP and Dell are among the first to feel the pressure from the dwindling supply chain and have reported a significant gap between demand and supply for their PC systems.

Nikkei also notes that both AMD and Intel have informed their clients that CPU price increases will take effect by the end of March and into April, which should start to manifest very soon. What used to be a one or two-week wait from order to CPU shipment has now stretched to a process lasting eight to twelve weeks. This means that a CPU batch ordered in April might not arrive until June. This period is expected to be the worst in terms of supply in the second quarter of this year. Even if OEMs are willing to pay extra to secure CPU supply, availability is lacking. The CPU shortage is worsening daily, coinciding with the ongoing memory and storage shortage we are already experiencing.