Advanced Micro Devices (AMD) stock came under pressure after Nvidia (NVDA) said it would invest $5 billion in Intel (INTC) and work with the company to build custom CPUs and new chip platforms. The announcement drew quick reactions from analysts, who see new risks for AMD as Intel and Nvidia join forces. While Lynx Equity sees it as a clear negative for AMD, Stifel views the impact as only modest.
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Lynx Equity Sees Clear Negative Impact
Lynx Equity said the deal is “clearly a negative for AMD.” The firm explained that the partnership revives an earlier Intel project to build custom x86 CPUs for Nvidia’s AI systems. This is a direct threat to AMD, since one of its key strengths has been an AI platform that pairs x86 CPUs with GPUs to handle a wide range of data center tasks. Nvidia’s Arm-based CPUs have been limited mostly to networking, but Intel’s involvement could close that gap quickly, eroding AMD’s edge.
Lynx also warned that the deal reaches beyond data centers. Intel plans to integrate Nvidia’s RTX GPU chiplets into its client SoCs, which could increase competition in the PC market. AMD has gained ground there in recent years, but Intel has the packaging tools to bring these products to market, which could help it win back share from AMD.
Stifel Sees Only a Modest Negative for AMD
Stifel also weighed in on the Intel–Nvidia announcement, but with a less severe view than Lynx. The analyst said the deal combines Intel’s long history with x86 CPUs and Nvidia’s leadership in GPUs, creating stronger offerings in both data centers and PCs.
For Intel, Stifel highlighted the chance to finally compete more directly in high-density AI infrastructure, where it has struggled to gain ground. For AMD, this means tougher competition ahead, but Stifel called the impact a “modest negative.”
The analyst added that the timing works in AMD’s favor for now. It could take time before Intel and Nvidia roll out their new joint products, which gives AMD some room to defend its current position in servers and PCs.
Which Chip Stock Is the Best Buy?
Turning to Wall Street, out of the three stocks mentioned above, Nvidia and AMD carry notable upside potential. Nvidia has a Strong Buy rating with about 20% upside to its average price target of $211.25. Meanwhile, AMD is rated a Moderate Buy, with analysts seeing nearly 19% upside to $188.00. Intel, on the other hand, has a Hold rating and a downside risk of about 23% from its current price, with a target of $23.61.
