The new partnership between Intel and Nvidia is making headlines on the stock exchange. Investors are wondering whether AMD is under even more pressure.
• Nvidia and Intel cooperate with chip design
• Despite partnership, Intel remains faced with delays and production problems
• AMD well positioned in the market
Intel and Nvidia: An alliance with a signal effect
With the announcement of strategic cooperation between Intel and Nvidia, the semiconductor industry focused on on Thursday. The aim of the partnership is to increase the computing power for AI applications and high-performance computing by closing Intel’s CPU architecture closer to Nvidia’s GPU technologies.
Great excitement on the stock exchange
Investors reacted immediately: While Intel shares on the Nasdaq ultimately increased by 22.77 percent to $ 30.57, Nvidia titles laid $ 175.87 by 0.21 percent. After that, however, the euphoria is somewhat reducing again, Intel in pre-exchangeable Friday trading in places loses $ 30.37, Nvidia tends to $ 175.87. Meanwhile, the announced cooperation for Advanced Micro Devices (AMD) was a nasty surprise, since his greatest competitor in the field of graphics processors and his greatest competitor in the CPUs area. The AMD share temporarily bent up to around 5.9 percent in Thursday trading, but until the end it was a minus of $ 157.92. Pre-inconomy, it is then at times 0.99 percent down to $ 156.35.
AMD in the shadow of headlines – or beneficiaries of the situation?
Although the duo Intel-Nvidia seems powerful on paper, experts do not see AMD weakened. “The fact that two big competitors are bundling their strength is not exactly a positive result” for AMD, says Marketwatch Jack Gold, senior analyst in J. Gold Associates.
AMD will benefit from the fact that Nvidia may not be able to fully operate his high demand, the expert predicts. “If someone needs something and cannot get it from a provider, he will try to get it from someone else,” said Gold. In such situations, customers are increasingly accessing AMD products that are often cheaper with comparable performance, Brian Mulberry, Senior Portfolio Manager at Zack’s Investment Management, also noted. Analysts also point out that AMD keeps solid market shares with its Epyc processors and GPUs in the AI environment.
Challenges for Intel, opportunities for AMD
While NVIDIA secures its position in the CPU area through alliance, Intel is confronted with well-known problems: Delays in new factories and technological residues burden long-term competitiveness, Mulberry recalls in an email to Marketwatch. For AMD, this opens up scope – not only in the classic server market, but also at the future field of Edge Computing, where CPUs are at the center. Industry observers expect that the rapidly growing AI market will ultimately be large enough to enable several providers to grow profitable growth. If the investment expenses remain constant, Mulberry sees “a lot of business for everyone who wants to expand their AI infrastructure”.
Editor finance.net
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