Full capacity production still cannot meet demand! Intel(INTC.US)CFO: Server chip demand "remains strong" supply bottlenecks will persist throughout the year

Intel’s Chief Financial Officer Dave Zinsner stated at a conference that the company’s high-margin server processors remain in strong demand, and this trend is expected to continue into next year.

On Wednesday, at an event held by Morgan Stanley in San Francisco, Zinsner pointed out that due to limited factory capacity and supply shortages across the semiconductor industry, Intel is struggling to meet the growing order demand.

Zinsner said that based on last year’s sales growth of over 20%, the server market “will see another significant increase this year.”

The surge in demand for devices used to create and run artificial intelligence (AI) services has further boosted the need for processors from companies like Intel—these processors play a supporting role in related hardware, and the tight supply situation is affecting a wider range of suppliers.

While this helps Intel benefit from the trend of advancing the computer industry, the company is still working to increase the capacity of its factories and suppliers. As a once-dominant semiconductor company, Intel has been dedicated to reshaping its technological advantages and regaining lost market share for years. The operational efficiency of its manufacturing plants is crucial to reversing the current situation.

Zinsner said that the capacity shortage will gradually ease but will persist through the end of this year. He noted that many of Intel’s factories are currently operating at over 100% capacity utilization.

Boosted by these comments, Intel’s stock rose as much as 6.9% on Wednesday, reaching a high of $46.08; by the close, the stock had gained a total of 23% year-to-date.