Chip manufacturing giant Intel's server CPU prices marked a strong 48% increase in the second quarter due to a higher level of premium products being sold, the firm revealed in its SEC filing earlier. The firm shared its second quarter results last week, and they saw it post the fastest growth in 15 years courtesy of the ongoing wave of demand of artificial. intelligence processors. Intel's data center business marked a 59% annual revenue growth to generate $6.3 billion in sales for the second quarter.
Intel Basks In High Average Selling Price (ASP) Growth For Its Second Quarter For Its Server CPUs
During Intel's second quarter earnings call, CEO Lip-Bu Tan discussed the impact of agentic AI on the firm's products in detail. The CEO outlined that the growing demand from agentic workloads meant that the density of CPUs in the server ecosystem was increasing. As a result, Tan remarked that "general purpose server CPU density continue to increase, and our core server CPU franchise is growing faster than ever."
Following the earnings release, Intel also posted its quarterly earnings filings with the SEC. As part of the filings, the firm revealed that its server CPU average selling prices (ASPs) grew by double-digit percentages in year-to-date 2026 and in Q2 2026.
More specifically, Intel announced the ASPs for server products jumped by 48% annually in the second quarter and by 38% annually for the first two quarters of 2026. The firm added that the ASP jump was due to "a higher mix of premium products sold in Q2 2026 and YTD 2026, with demand-based pricing actions contributing to a lesser extent, in part to offset higher input costs."
Additionally, the firm also remarked that as server volume jumped by 9% annually during the second quarter, "market demand exceeded our available product supply in Q2 2026 and YTD 2026 due to internal supply constraints."
During the earnings call, Tan shared additional details about the demand of its server CPUs. "In particular, the most important node for us on servers is Intel 3, because that's our node to produce Granite Rapids and we're seeing tremendous demand there," he said.
"In fact, as strong as demand is across all of our products within data center, Granite Rapids is extremely tight, because the reception there has been fantastic," Tan added.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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