Nvidia-Intel Alliance Sends AMD Shares Tumbling

Advanced Micro Devices shares plunged 5% Thursday after Nvidia and Intel announced a strategic partnership to co-develop AI infrastructure and PC solutions, raising concerns over AMD’s competitive position in both data-center and consumer markets.

The alliance leverages Nvidia’s NVLink tech and Intel’s CPU expertise to build integrated x86 system-on-chips and customized CPUs for AI workloads, directly challenging AMD’s growing market share in AI-accelerated servers and high-performance desktops.

Nut Graf

By uniting Nvidia’s GPU leadership with Intel’s processor manufacturing scale, the partnership aims to accelerate AI adoption across enterprise and edge computing. Investors reacted swiftly, fearing that AMD’s dual competition could erode its recent gains in the EPYC and Ryzen processor lines.

Key Developments

Stock Impact: AMD shares fell 5% in early trading on September 18, 2025, while Intel stock jumped 30% amid the news.
Collaboration Scope:
- Intel to produce custom x86 CPUs for Nvidia’s AI platforms.
- Joint development of x86 system-on-chips integrating Nvidia RTX GPU chiplets for PCs.
Financial Commitment: Nvidia plans a $5 billion investment in Intel common stock at $23.28 per share to solidify the alliance.
Broader Market Context: The tech giants move comes as AI computing demand surges, with AMD riding strong momentum in its Instinct MI350 accelerators and EPYC Genoa server CPUs.

Market Reaction and Outlook

Analysts warn that the Nvidia-Intel tie-up could place AMD in a “pincer” between two of its largest rivals, potentially slowing AMD’s revenue growth in AI and high-end desktop segments. However, AMD’s leadership emphasizes ongoing R&D investments and upcoming product launches-including next-generation Zen 6 EPYC processors and Ryzen AI PRO CPUs-to maintain momentum.

AMD’s response strategy will be closely watched in the coming weeks as the semiconductor landscape realigns around this high-profile collaboration.