AMD Stock Drops 5% as Intel and NVIDIA Seal $5 Billion AI Chip Partnership

Research firms issued differing views on the competitive impact. Lynx Equity described the development as “clearly a negative for AMD,” pointing to Intel’s plan to revive a previous project to pair x86 CPUs with NVIDIA GPUs. According to the firm, this could undermine one of AMD’s strengths: combining x86 CPUs with GPUs in data centers.

Lynx also warned that the partnership could affect the PC market. Intel’s advanced packaging technology may allow it to deliver products faster, potentially reversing AMD’s recent share gains in consumer computing. NVIDIA’s brand recognition in graphics further intensifies this risk.

Stifel, however, assessed the impact as a “modest negative” for AMD. The firm noted that Intel and NVIDIA will need time before new products reach the market, which provides AMD with room to protect its current positions. Stifel also emphasized that AMD continues to benefit from its competitive pricing and established customer base.