Intel NASDAQ:INTC may have room to increase processor prices again this quarter without hurting demand, as supply constraints in the server CPU market continue, Wedbush said in a recent note.
Wedbush said ongoing shortages of server processors could allow Intel to raise pricing while maintaining customer demand. The firm added that a key question is whether original equipment manufacturers are paying the higher prices or whether the increases are mainly being passed through distribution and retail channels, which represent a smaller portion of Intel's business.
Recent media reports suggested Intel has increased list prices for selected Xeon server chips and Core Ultra processors at the start of the third quarter. The company did not immediately comment on the reports.
Investors are likely to monitor whether any pricing changes improve margins without affecting shipment volumes, particularly in the data center business where server CPU availability remains tight. Analysts said sustained enterprise demand could give Intel greater pricing flexibility even as competition in the broader semiconductor market remains intense.