Intel Future Price Hikes Send Huge Demand Signal to Wall Street

Intel (INTC) is running short on chips, not customers. The semiconductor giant has spent the last year rebuilding its reputation with buyers of central processing units, the chips that act as the brain of a personal computer or a data center server.

Now the comeback story has run into a new problem: it cannot produce enough chips to keep up with orders, and the shortage is starting to show up in prices. Media reports indicate that Intel raised list prices on its Xeon server chips and Core Ultra laptop chips heading into the third quarter, and Wall Street thinks the company can keep raising prices without scaring away buyers.