**Key Points:**
Shares of **Intel** (NASDAQ: INTC) climbed 5.5% on Friday, following a hefty $200 billion capital spending forecast from **Amazon** (NASDAQ: AMZN) for 2026. The increase is reflective of a broader rally in AI-related semiconductor stocks due to rising demand for traditional server CPUs, as both Intel and competitor **AMD** plan to raise prices by up to 10% in China amid supply shortages.
Amazon’s strategic partnership with Intel includes co-developing custom CPUs intended for AI applications, further solidifying the relationship as traditional CPU demand resurges. Both firms have warned Chinese customers of server CPU lead times extending up to six months, with Intel recently announcing a supply shortfall due to the transition of manufacturing lines for server chips, prompting an anticipated acceleration in revenue and profits by late 2026.
