Intel stock jumps on report of CPU price hikes

Investing.com -- Intel Corporation (NASDAQ: INTC) rose 4% Wednesday, while Advanced Micro Devices (NASDAQ: AMD) gained 2.5% after Nikkei reported both chipmakers informed clients of CPU price increases.

According to Nikkei Asia, Intel and AMD each told customers they plan to raise prices across their entire CPU product lines starting in March and April, respectively. Multiple sources revealed CPU prices have been raised multiple times since the beginning of the year, with an average increase of 10% to 15%, and some products seeing even higher hikes.

The price increases come as supply constraints in central processing units worsen. Delivery lead times have surged from the previous one to two weeks to an average of eight to twelve weeks, with some cases extending as long as six months, according to the report.

The supply constraints are adding pressure for server makers dealing with the tighter CPU availability from both Intel and AMD.

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