Intel is preparing to raise prices on personal computer processors by 10% in October, The Verge reports citing Digitimes data. The shift to higher prices reflects the company's new strategy of focusing on improving profitability rather than fighting for market share gains. Intel CEO Lip-Bu Tan has been cutting low-margin product lines since late 2025, and the price increase aligns with this course toward revenue optimization.
The news of the planned price increase drew a positive reaction from investors. Intel (INTC) shares rose 9.5% on Tuesday following the publication of information about the processor price hike. Analysts at Northland Securities viewed the development as a signal of improving financial performance and upgraded the company from Market Perform to Outperform with a target price of $120 per share. Notably, shareholders welcomed the price increase despite the market's typically negative view of such moves, correctly interpreting it as a shift in the business model toward higher margins. According to BeInCrypto, the U.S. government, which holds a 9.9% stake in Intel (433.3 million shares), has gained a paper profit of approximately $36 billion. The U.S. government acquired this stake in August 2025 for $8.9 billion at a price of $20.47 per share; shares are currently trading at around $105 apiece, putting the total value of the holding at approximately $45.5 billion.
Additionally, according to Digitimes, Intel is considering a workforce reduction of 5–10% (though it may simultaneously hire new employees) and could discontinue its Small Core lineup, which would primarily affect industrial personal computers. The company itself has yet to confirm either the timeline or the specific processor models that will be subject to the price increase. Together with equipment manufacturer ASML, Intel announced that it has run more than one million silicon wafers through the latest High-NA EUV extreme ultraviolet machines used for printing chip structures. The actual impact of the price increase on computer manufacturers and end consumers will become apparent in the third-quarter financial results, which the company is set to publish at the end of October.