U.S.-China Trade War Boosts Demand for Intel's Older Chips

Intel is experiencing a surge in demand for its older-generation PC and server chips as the U.S.-China trade war creates economic uncertainty and tariff risks. Customers, wary of potential price hikes and a possible recession, are stockpiling cheaper legacy chips instead of investing in newer, more advanced models. This shift is helping Intel beat first-quarter sales expectations, but the company remains cautious about future growth due to looming tariffs—particularly China's threatened 85% levy on U.S.-made chips. Intel executives warn that ongoing trade tensions and regulatory risks could drive up operational costs and increase the likelihood of an economic slowdown. While Intel hopes to revitalize sales with AI-powered chips and new Windows devices, analysts caution that reliance on older technology may hinder innovation and hurt long-term prospects. The company's ability to navigate global trade headwinds will be crucial as it balances short-term demand with long-term strategy.