Investors are cheering Intel Corp (NASDAQ: INTC) this morning after the AI chips giant – Nvidia Corp (NASDAQ: NVDA) announced a $5 billion investment in the embattled semiconductor firm.
According to the companies’ joint press release, the announced partnership goes beyond equity – it includes co-development to custom data centre and PC chips, leveraging Nvidia’s AI stack and Intel’s x86 ecosystem.
For INTC, this is a strategic lifeline that arrives shortly after the US government took a 10% stake in the chipmaker.
For its Santa Clara-headquartered peer, Advanced Micro Devices Inc (NASDAQ: AMD), however, the Nvidia-Intel news isn’t boding well given the AI stock is down over 5.0% at the time of writing.
What the Nvidia-Intel news really means for AMD stock
The aforementioned sell-off in AMD shares following the Nvidia-Intel news today appears more sentiment-driven than fundamentally justified.
NVDA’s investment in the beleaguered chipmaker does not involve the latter’s Foundry business.
It’s a non-exclusive, non-disruptive, and strategically narrow partnership, which means Nvidia is not abandoning its existing ecosystem (TSMC, Arm, CUDA dominance) – it’s just hedging against geopolitical risks and diversifying its packaging and x86 options.
Meanwhile, AMD’s competitive moat – chiplet architecture, EPYC server traction, and its own AI accelerators – remains intact.
The deal doesn’t reroute Nvidia’s core workloads or redefine the AI stack.
Think of it as a tactical alignment, not a tectonic shift. It’s not like AMD is being replaced; it’s just being contrasted – and that’s survivable, even advantageous.
Why NVDA-INTC alliance may prove advantageous for AMD shares
The Nvidia-Intel alliance announced today may actually prove a tailwind for AMD stock because it sharpens competitive lines without directly encroaching on its core strengths.
As Nvidia leans into Intel’s packaging and x86 capabilities, AMD is free to double down on its chiplet architecture, EPYC server leadership, and seamless integration with TSMC’s advanced nodes.
The partnership also reinforces Advanced Micro Devices’ position as the neutral alternative – unentangled in geopolitical hedging or legacy manufacturing constraints.
As Nvidia and Intel navigate their own alignment, AMD can accelerate innovation, deepen ecosystem ties (like UALink), and capture market share from enterprises wary of vendor lock-in.
In essence, the deal creates a bifurcation that lets the semiconductor stock define its own lane—with clarity, speed, and strategic independence.
Should you invest in AMD stock on the pullback?
As is evident, AMD’s leadership in high-performance CPUs and its role in the UALink consortium (a rival to Nvidia’s NVLink) remain intact.
The real risk here is perception only: investors may fear Advanced Micro Devices losing relevance in AI server architecture.
However, in reality, AMD’s roadmap and execution strength still offer competitive insulation.
So, yes, AMD shares are worth buying on the pullback today if you’re looking beyond the headline volatility.
The company’s fundamentals remain solid: strong data centre growth, competitive GPU launches, and leadership in chiplet architecture.
Wall Street analysts continue to rate AMD stock at “overweight” as its innovation pipeline and execution track record suggest resilience.
Their mean target of $191 indicates potential upside of nearly 25% in the AI stock from current levels.
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