Recent analysis from investment firm Susquehanna indicates a notable trend for 2026: a significantly higher proportion of newly assembled personal computers will incorporate older generation processors from Intel (NASDAQ: INTC) and Advanced Micro Devices (NASDAQ: AMD). This shift is attributed to the chipmakers' strategic decision to allocate their latest manufacturing capacity and most advanced chips to the more profitable server market, rather than to AI-focused personal computers.

The firm's report shows that in Q2 2026, the share of models equipped with Intel's dedicated AI PC processors remained largely stable overall. Within Intel's notebook platform, the proportion of systems using the Arrow Lake series held steady sequentially at approximately 10% (across 359 SKUs), while the Lunar Lake series saw a marginal increase of one percentage point to about 9% (across 319 SKUs).

Interestingly, several older Intel platforms gained share in notebooks. For instance, the Tiger Lake platform's share grew by two percentage points sequentially, and Ice Lake's share increased by one percentage point. Concurrently, the proportion of notebooks powered by Intel 7 process technology chips declined by six percentage points sequentially to around 48%.

A team led by Susquehanna analyst Christopher Roland noted in a Tuesday report that this data suggests Intel is prioritizing the allocation of its more advanced manufacturing capacity to server CPUs. Both the Sapphire Rapids and Emerald Rapids server processors utilize the Intel 7 process.

A similar pattern is emerging for AMD, with its older CPU models also seeing increased presence in new PC assemblies. Despite new PC assembly volumes so far in 2026 exceeding expectations, Susquehanna still forecasts a 10% year-over-year decline in full-year Original Design Manufacturer (ODM) shipments, primarily due to significantly weaker anticipated demand in the second half of the year.

This outlook aligns with projections from several other research firms. IDC anticipates a global PC shipment decline of 11.3% for 2026, while Omdia predicts a drop of 12%. Morgan Stanley forecasts a decrease exceeding 5%. This chill in the PC market stands in stark contrast to the ongoing heat in the server segment.