Intel-Nvidia Alliance Shakes Up AI Chip Market, Putting Pressure on AMD

AMD's Underdog Moment: Nvidia-Intel Alliance Raises The AI Stakes - NVIDIA (NASDAQ:NVDA), Intel (NASDAQ:INTC), Advanced Micro Devices (NASDAQ:AMD)

Nvidia Corp NVDA just handed Advanced Micro Devices Inc AMD a fresh headache. The chip giant is teaming up with Intel Corp INTC in a sweeping $5 billion collaboration to co-develop custom CPUs, GPUs, and AI infrastructure, leaving AMD on the outside looking in at a new two-horse race in both data centers and PCs. Track AMD stock here. Why This Matters For AMD For years, AMD has positioned itself as the alternative to Nvidia in AI GPUs and Intel in CPUs, carving out share with its EPYC server processors and Radeon Instinct accelerators. But Nvidia's decision to effectively endorse Intel's CPUs -- and even integrate RTX GPU chiplets into Intel SOCs -- sidelines AMD's value proposition. Investors worry this could blunt AMD's push into AI servers just as demand surges, particularly since Nvidia's CUDA ecosystem remains the industry standard. Read Also: Nvidia Vs. AMD: Who Gets Hit Harder By The 15% China Revenue Tax? The Market Dynamics The Nvidia-Intel alliance doesn't just carry technical weight; it carries financial heft. Nvidia's $5 billion investment in Intel underscores its commitment to building a rival CPU-GPU powerhouse. That means AMD now faces a duopoly with a formidable moat -- Nvidia's AI stack fused with Intel's manufacturing scale and x86 dominance. While AMD has made strides with MI300 accelerators and Xilinx integration, the perception of being the "third wheel" could weigh on sentiment unless it delivers breakthrough wins in AI adoption. For AMD, the message is clear: the AI arms race just got more crowded. With Nvidia betting on Intel, the pressure is on CEO Lisa Su's team to prove that AMD can still play kingmaker in both AI infrastructure and next-gen PCs -- or risk being squeezed by two industry giants closing ranks. Read Next: AMD Aims To Dethrone Nvidia In AI Race -- Here's How Photo: Shutterstock AMDAdvanced Micro Devices Inc$157.60-0.98%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum78.79Growth94.30Quality77.35Value9.80Price TrendShortMediumLongOverviewINTCIntel Corp$30.4622.3%NVDANVIDIA Corp$176.253.50%Market News and Data brought to you by Benzinga APIs

AMD Shares Drop After $5B Intel-Nvidia Alliance Targets AI and PC Markets | Investing.com UK

AMD shares fell 5% in premarket trading on Thursday following the announcement of a major strategic partnership between rivals Intel and Nvidia. The collaboration, which includes a $5 billion Nvidia investment in Intel, aims to co-develop AI infrastructure and personal computing products that could directly challenge AMD's market position. Intel's stock surged nearly 30% on the news, highlighting the significance of this alliance in the competitive semiconductor landscape. The Intel-Nvidia collaboration centers on integrating Nvidia's AI expertise with Intel's CPU technologies using Nvidia's NVLink technology. Under the agreement, Intel will manufacture custom x86 CPUs for Nvidia's AI infrastructure platforms while developing x86 system-on-chips that integrate Nvidia RTX GPU chiplets for the consumer PC market. This partnership creates products that directly compete with AMD's offerings in both data center and consumer segments. Nvidia's $5 billion investment in Intel common stock at $23.28 per share further strengthens the alliance between the two companies. The collaboration represents a significant shift in the semiconductor industry's competitive dynamics, as it unites two of AMD's primary rivals in both the CPU and GPU markets. Mizuho analyst Jordan Klein characterized the development as "BAD FOR AMD," noting that Nvidia could have partnered with AMD instead but chose Intel, creating additional competitive pressure. As of Thursday afternoon, AMD shares were trading at $154.79, down 2.75% from the previous close of $159.16. The stock has shown mixed performance this year, with a year-to-date return of 28.16% compared to the S&P 500's 12.83%, though its one-year return of 4.40% significantly trails the broader market's 18.12%. AMD maintains a market capitalization of approximately $251 billion with analyst price targets ranging from $125.10 to $230.00, averaging $185.77. The partnership announcement poses a multi-faceted challenge for AMD, which has been gaining ground against both Intel in CPUs and Nvidia in GPUs, particularly in AI applications. AMD now faces intensified competition as its two main rivals combine their strengths, potentially limiting AMD's market share growth in the rapidly expanding AI chip market. The collaboration particularly threatens AMD's data center ambitions and its positioning in the gaming and consumer PC markets where it competes with both companies' products. *** Looking to start your trading day ahead of the curve?