{"id":4411,"date":"2025-04-25T13:32:51","date_gmt":"2025-04-25T13:32:51","guid":{"rendered":"https:\/\/prepsaret.com\/news\/?p=4411"},"modified":"2025-04-25T13:32:51","modified_gmt":"2025-04-25T13:32:51","slug":"market-uncertainty-spurs-unexpected-demand-for-intels-older-chips","status":"publish","type":"post","link":"https:\/\/prepsaret.com\/news\/market-uncertainty-spurs-unexpected-demand-for-intels-older-chips\/","title":{"rendered":"Market Uncertainty Spurs Unexpected Demand for Intel\u2019s Older Chips"},"content":{"rendered":"<h1 style=\"text-align: center;\"><b>Market Uncertainty Spurs Unexpected Demand for Intel\u2019s Older Chips<\/b><\/h1>\n<p><span style=\"font-weight: 400;\">Intel is experiencing a surprising surge in demand for its legacy PC and server processors as economic fears and the escalating Sino-U.S. trade tensions prompt customers to prioritize cost-effective hardware options, company leaders revealed Thursday.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The strained global trade environment\u2014fueled by President Donald Trump\u2019s expansive tariff policy and China\u2019s retaliatory measures\u2014has customers hedging against rising prices by purchasing older-generation chips instead of newer, more expensive models.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Michelle Johnston Holthaus, head of <\/span><a href=\"https:\/\/www.intel.com\/content\/www\/us\/en\/ark.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Intel\u2019s product division<\/span><\/a><span style=\"font-weight: 400;\">, noted during a post-earnings call, \u201cIn client, we are seeing strong demand on older-gen parts and in data center as well.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">She attributed this trend to broader market unease, adding, \u201cMacroeconomic concerns and tariffs have everybody hedging their bets.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite issuing a weaker-than-expected forecast for the June quarter, the company exceeded Wall Street expectations in Q1 due to clients stockpiling processors ahead of potential price hikes.\u00a0<\/span><\/p>\n<p><b>Related story: <\/b><a href=\"https:\/\/prepsaret.com\/news\/trump-administration-signals-tariff-reduction-on-chinese-imports-amid-economic-pressures\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Trump Administration Signals Tariff Reduction on Chinese Imports Amid Economic Pressures<\/span><\/a><\/p>\n<h2 style=\"text-align: center;\"><b>Shifting Preferences Amid Trade and Economic Turmoil<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Although chips are currently exempt from Trump\u2019s tariffs, looming risks persist. A notice from the <\/span><a href=\"https:\/\/www.semi.org\/en\/business-markets\/tag\/chinese-semiconductor-industry-association\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">China Semiconductor Industry Association (CSIA)<\/span><\/a><span style=\"font-weight: 400;\"> earlier this month indicated that U.S.-made chips could soon face tariffs of 85% or more as part of China&#8217;s response.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">David Zinsner, Intel\u2019s chief financial officer, raised concerns about the implications of this volatile trade backdrop.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe very fluid trade policies in the U.S. and beyond, as well as regulatory risks, have increased the chance of an economic slowdown with the probability of a recession growing,\u201d he said. \u201cWe will certainly see costs increase.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Industry experts caution that <\/span><a href=\"https:\/\/prepsaret.com\/news\/u-s-moves-to-impose-new-tariffs-on-chinese-semiconductors\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">rising tariffs <\/span><\/a><span style=\"font-weight: 400;\">could stall any near-term rebound in the PC market, a development that may hinder Intel\u2019s efforts to rekindle demand with new AI-powered chip offerings and an upcoming Microsoft Windows cycle.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cDemand for older-generation chips is a flashing macro signal,\u201d observed Michael Ashley Schulman, chief investment officer at Running Point Capital. \u201cIn a shaky economic climate, &#8216;good enough&#8217; beats bleeding edge.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, some analysts argue that reliance on outdated processors could blur expectations for Intel\u2019s AI-centric PC chips.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bob O&#8217;Donnell, lead analyst at Technalysis Research, warned that the appeal of budget-friendly options may undercut the adoption of more advanced chips, ultimately affecting Intel\u2019s profitability.<\/span><\/p>\n<p><b>Read next: <\/b><a href=\"https:\/\/prepsaret.com\/news\/sk-hynix-reports-soaring-profits-eyes-ai-expansion-amid-tariff-scrutiny\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">SK Hynix Reports Soaring Profits, Eyes AI Expansion Amid Tariff Scrutiny<\/span><\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market Uncertainty Spurs Unexpected Demand for Intel\u2019s Older Chips Intel is experiencing a surprising surge in demand for its legacy PC and server processors as economic fears and the escalating Sino-U.S. trade tensions prompt customers to prioritize cost-effective hardware options, company leaders revealed Thursday. The strained global trade environment\u2014fueled by President Donald Trump\u2019s expansive tariff [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":4413,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[330],"tags":[],"class_list":["post-4411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.4 (Yoast SEO v25.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Market Uncertainty Spurs Unexpected Demand for Intel\u2019s Older Chips<\/title>\n<meta name=\"description\" content=\"Market Uncertainty Spurs Unexpected Demand for Intel\u2019s Older Chips, as customers seek affordable options amid rising trade tensions.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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