Intel Plans CPU Price Hike, Prioritizes Profitability

Intel is preparing to implement another approximately 10% price increase on its central processing units (CPUs), with the adjustment expected to take effect around October 5. This planned price hike marks the third such increase since late 2025, signaling a significant strategic shift by the chipmaker. The company is reportedly also considering discontinuing certain low-margin products, particularly its "Small Core" processor line, as it prioritizes gross margin growth over aggressive market share expansion. This strategic pivot comes as the overall PC market is forecasted to decline slightly in 2027. Intel's approach suggests a focus on increasing profitability even as the addressable market contracts. The company's chief executive, LipBu Tan, is reportedly driving this margin-first strategy, a departure from previous priorities. This focus on higher profitability is also reflected in Intel's server CPU segment, where average selling prices saw a substantial year-on-year increase in the second quarter of 2026, driven by growing demand for AI and server-related products.