- Analysts say Nvidia-Intel Agreement could reshape AI and PC markets all over the world
- Industry comment focuses on influence for TSMC, AMD and Global Chip Competition
- Biggest Technological Agreement on decade -gnists Debate on Foundry Future and Rivals
The recent announcement that Nvidia would invest $ 5 billion in Intel came as a shock to many across the technology sector.
The deal will see the world’s largest chip company buy a 4% share in its long -threatening rival, while Intel committed to building custom X86 CPUs for NVIDIA’s AI infrastructure.
The deal also includes plans for the X86 system chips that combine Intel CPUs with NVIDIA GPUs that suggest the possibility of future data center X86 APUS.
The surprise message had an immediate impact on the markets. Nvidia’s value increased by about $ 150 billion on the news, more than Intel’s whole capitalization. On paper, it was a thirty times return on its $ 5 billion investment in less than 24 hours. Intel shares also increased and marked their best day since 1987.
For Nvidia, the investment provides equity in a rival while ensuring a roadmap for new classes of products. For Intel, it provides both capital and a hard need for confidence in its ability to play a role in the AI era.
But what did tech journalists and analysts of the news did?
Analysts are discussing what it means
In his reporting, Registered Framed the Move as the opening of a new front for Nvidia, with Tobias Mann, who writes: “For Nvidia, the event gives the event an opportunity to expand its GPU empire to the integrated graphics arena, a space that is historically dominated by Intel and AMD.”
Mann, who describes NVLink as a key, said that by integrating Interconnect Tech into his CPU designs, “Nvidia will be able to offer NVL72-style systems based on both its internal CPUs and Intels Xeons, while also addressing a larger proportion of the PC graphics arena.”
Serve the homePatrick Kennedy touched the data center angle and reported that companies “say that ‘Intel will build the Nvidia-Custom X86 CPUs that Nvidia will integrate into its AI-Infrastructure Platforms and offer the market.’ It is definitely a net positive for Intel and probably a net negative for AMD.
At PCS, Kennedy reported: “Intel will build and offer the market X86 System-On chips that integrate NVIDIA RTX GPU chipletter.” Registered warned that such progress “could mean bad news for Intel’s internal graphics department”, considering Arc’s limited traction.
Questions about Intel Foundry are sitting with the product plans.
Writing for Yahoo FinanceClaimed Laura Bratton, “The investment does a little to solve what is undoubtedly Intel’s biggest problem: how to solve his ailing contract chip manufacturing,” with reference to loss and a long way to cash generation.
CNBC The result Citi’s skepticism that the integration of NVIDIA graphics will make Intel’s CPUs more competitive against AMD, and quotes analyst Christopher Danely, “We doubt this makes Intel CPUs more competitive as integrating another company’s graphics would not make a CPU more competitive as the processor is the most important performance driver for a PC.”
Pakinomist‘Stephen Nellis pointed to a possible, indirect increase in production and wrote that the partnership could “put the fighting chipmaker’s next generation manufacturing technology on a stronger foot”, including confidence in the 14A process if common products create volume.
He added that engineers will collaborate to “make Nvidia’s technology a physical chip made on Intel.”
Analyst Jack Gold said: “It must be said that although this event is very beneficial to both parties, there are some losers. In particular, AMD may be disadvantaged as a result of this partnership, although they are comfortable with their own AI efforts in GPU and CPU. Still having two major competitors combining their efforts is not exactly a positive result for AMD.”
Gold also suggested that the agreement could eventually expand to Intel -making: “Any relationship with Nvidia at this time, although it is not explicitly talking about the foundry services should be seen as a possible expansion of the partnership in the future, and if that happens, it would be a big victory for Intel Foundry Services.”
Mobile World Live Reported that during the conference call that followed the message, both Nvidia and Intel’s CEOs faced several questions about NVIDIA using Intel’s foundry technology.
Nvidia-Manager Jensen Huang played things down and said, “I think we would both say that TSMC is a world-class foundry. I just can’t exaggerate the magic that is TSMC.”
The economist Tied the collaboration to Nvidia’s wider strategy and to Nvlink’s role, writing, “This helps to strengthen Nvidia’s position as a partner chosen in AI’s world.”
The news site also cited analysts at Futurum Group, who said, “The AI economy will run on systems where NVLink is the standard and Nvidia decides who gets connected.”
EENEWS AnalogNick Flaherty sounded a note of caution for Intel, suggesting that the message “paves the way for NVIDIA to buy the design industry for fighting chip producer Intel.”
It linked equity share of $ 5 billion to “an important negotiating position in any future negotiations”, while recognizing that process choices remain open and that both companies pointed to future product messages rather than founding obligations.
