How Intel is riding the ‘CPU comeback’ as AI shifts - and where China stands
What’s behind the ‘CPU renaissance’ and where China stands in designing and manufacturing central processing units in the AI age
The central processing unit (CPU) – the chip technology that drove Intel’s sales and profits for decades but was overshadowed by the graphics processing unit (GPU) in the AI age – is making a comeback.
That’s according to Intel CEO Lip-Bu Tan, speaking on the company’s latest earnings call. “The CPU is [reasserting] itself as the indispensable foundation of the AI era,” he said. “This isn’t just our wishful thinking, it’s what we hear from our customers.”
Intel shares rose about 20 per cent in after-hours trading on Thursday night local time, after it beat first-quarter earnings estimates, extending its rally since last year.
The chip giant, which appeared to lag in the early stages of the artificial intelligence boom, is showing signs of a rebound, mainly driven by surging demand for CPUs due to increasing AI agentic capabilities. Revenue from Intel’s data centre business rose 22 per cent to US$5.1 billion in the first quarter.
CPUs have returned to the spotlight in the era of agentic AI, marking a shift away from the earlier narrative of “more GPUs, more compute”.
The South China Morning Post explains the logic behind this “CPU renaissance” – and where China stands in design and manufacturing.