Consumer Electronics Face Chip Shortages as AI Data Centers Proliferate

May 05, 2026 at 10:05 AM EDT

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Makers of consumer electronics, such as laptops and smartphones, are facing chip shortages as chip demand within the AI data centers skyrockets. These shortages in the consumer electronics industry are happening even if the type of chips they require differs from those needed in data centers.

In contrast, companies like Broadcom Inc. (NASDAQ: AVGO) that provide software solutions to AI data centers and other industries are seeing their revenues and margins rising as the data center boom…

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