Wall Street analysts are weighing in on the blockbuster partnership between Nvidia (NVDA) and Intel (INTC). The early consensus is clear: this is a strategic win for Intel, a total addressable market (TAM) expansion for Nvidia, and a potential shake-up for the broader semiconductor landscape.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Announced earlier today, the deal will see Intel manufacture Nvidia-custom x86 CPUs for data centers and new x86 chips with integrated Nvidia RTX GPU chiplets for PCs. The move could potentially boost Intel’s PC market share and expand Nvidia’s access to segments of the PC and data center markets.
The collaboration includes Nvidia investing $5 billion in Intel’s common stock at $23.28 per share. Following the news, shares of Intel surged more than 28% on Thursday, while Nvidia stock gained about 4%.
Baird: “Incrementally Positive for Intel”
Baird analysts called the announcement “incrementally positive for Intel,” pointing out several important benefits. The deal gives Intel’s Foundry Services a major boost by securing Nvidia as a flagship client, aligning with the company’s push for high-profile manufacturing partnerships.
Also, the analysts believe that strong A14 chip yields add confidence to Intel’s production timeline for late 2026 and strengthen its position in advanced manufacturing.
For NVDA, Baird analysts highlighted the growing role of x86 CPUs in AI workloads, potentially expanding Nvidia’s market beyond its ARM (ARM)-based chip plans.
At the same time, they stated that the partnership could pressure AMD (AMD), as Nvidia’s collaboration with Intel on integrated CPU-GPU platforms challenges AMD’s x86 dominance.
Wedbush: “Intel Goes from a Laggard to a Catalyst”
Wedbush analysts described the deal as a “game-changer” for Intel, stating that it brings the company “front and center into the AI game” after years of challenges for investors.
While no sales timeline has been provided, the analysts believe the deal will not disrupt either company’s individual growth strategies, as both continue to benefit from the booming demand for high-performance chips.
Nvidia remains the clear leader in the semiconductor space, but the analysts view this deal as a turning point for Intel, marking its shift from a “laggard to a catalyst” in the AI race.
Is Nvidia a Buy, Hold, or Sell?
Turning to Wall Street, NVDA stock has a Strong Buy consensus rating based on 35 Buys, two Holds, and one Sell assigned in the last three months. At $211.69, the average Nvidia stock price target implies a 19.88% upside potential.
Is Intel a Good Stock to Buy Right Now?
On TipRanks, INTC stock has received a Hold consensus rating, with one Buy, 25 Holds, and three Sells assigned in the last three months. The average Intel stock price target is $22.34, suggesting a downside risk of 28.04% from the current level.
