Can a lack of GPU cause my CPU to be working harder?
I've noticed, even during light gaming, that i am using 100% cpu, sometimes, and am guessing it is because of lack of dedicated GPU could this be the issue?
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yes, plain and simple
that is definitely true. Processors with integrated graphics will be working on much load for providing you light gaming performance if you don't have dedicated gpu attached. There is nothing to worry, just keep an eye on temps of the cpu while it is under full load.