Advanced Micro Devices (NASDAQ:AMD) saw its stock drop 5% Thursday morning following the announcement of a new strategic partnership between rivals Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC) aimed at jointly developing AI infrastructure and personal computing solutions.
The collaboration between two of AMD’s primary competitors has sent waves through the semiconductor industry. Intel shares surged 30%, while investors in AMD expressed concern over potential pressures on market share. The alliance will focus on linking Intel and Nvidia architectures through Nvidia’s NVLink technology, blending Nvidia’s AI capabilities with Intel’s CPU expertise.
As part of the deal, Intel will produce custom x86 CPUs for Nvidia’s AI infrastructure platforms. For the PC segment, Intel will develop x86 system-on-chips incorporating Nvidia RTX GPU chiplets, creating products that directly rival AMD’s offerings in both data center and consumer markets.
Nvidia further solidified the partnership with a $5 billion investment in Intel common stock at $23.28 per share.
“This alliance represents a formidable challenge for AMD,” analysts noted, highlighting the company’s strong presence in both CPU and GPU markets. AMD has been a key competitor to Intel in processors and to Nvidia in graphics, particularly within AI applications. The new Nvidia-Intel collaboration could intensify competition and impact AMD’s foothold across both sectors.
The announcement comes as the AI computing sector experiences rapid growth, with AMD actively working to expand its presence and capabilities in this high-demand market.
Advanced Micro Devices stock price
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