Intel CEO reportedly sees AI hardware shortages lasting 2 to 3 years

Intel CEO Lip-Bu Tan reportedly expects shortages of AI hardware, particularly memory, to persist for another 2 to 3 years. According to Wccftech, Tan made the remarks at the Asia Future Forward event in Singapore, where he discussed AI’s demand for memory. He attributed the shortages to persistent constraints in the technology supply chain.

The report says the outlook concerns memory, GPUs and, to a lesser extent, CPUs used in AI data centers. Strong demand from AI companies is also putting pressure on memory available to consumer markets, as chipmakers prioritize the more profitable AI sector.

Separately, Barclays reported that contract prices for DDR4 RAM rose 24% over the past three months, while DDR5 prices increased 20%. Barclays also expects Micron’s RAM supply to remain constrained through 2028.

TechRadar notes that German retail prices for DDR5 have reached 544% above their level before the shortage began last July. The article says the forecasts point to continued supply pressure through 2028, with shortages potentially lasting until 2029. It also expects 2027 to bring further memory price increases and pressure on other components, including GPUs. Micron has separately said that robots, or “physical AI,” will consume substantial memory supply in the future.