Intel’s AI-focused next-generation processor strategy has not created a strong demand as expected. New processors with Meteor Lake, Lunar Lake and Arrow Lake architectures have not attracted enough attention from users.

Intel’s AI processors fell short of expectations

The company fell well short of expectations, especially in AI-supported laptop sales. Users are turning to older generation processors that are more affordable and proven to be reliable.

The instability problems experienced in 13th and 14th generation processors lie behind this situation experienced by Intel. The company is having difficulty meeting the demand for processors produced with Raptor Lake architecture. Since production capacity is limited, there has been a stock shortage in these models.

Intel is trying to solve the existing problems with software updates, but the new generation Arrow Lake series has not been able to offer the expected big leap in gaming performance. On the laptop side, Microsoft’s Copilot integration and new AI processing units were insufficient to direct users to new models.

Instead of expensive systems with AI support but limited functionality, users are looking for; prefer older generation systems that are more affordable and meet basic needs. Due to the high demand for Intel 7 architecture Raptor Lake processors in particular, stock shortages have also emerged for these models.

Intel recently described this increase in demand for older generation models as an “unexpected jump” and reported that they are trying to balance the demands. The company is expected to launch its new generation artificial intelligence-supported Panther Lake processors towards the end of the year.