Intel’s Strategic Shift Raises Questions About Its Graphics Business Amid Nvidia Partnership

Intel's ongoing restructuring under CEO Lip-Bu Tan has seen the chipmaker exit noncore businesses, including memory chips, Ethernet switches, and mining chips. The latest move—a surprise deal with Nvidia to integrate GPUs into Intel CPUs—casts doubt on the future of Intel's own graphics division.

The company's Arc line of discrete GPUs, launched just a few years ago, now faces an uncertain path as Intel prioritizes PC and server CPUs alongside its manufacturing operations. Tan's "no blank checks" policy suggests further cuts could target any underperforming segments.

While the Nvidia collaboration strengthens Intel's position in integrated graphics for PCs and data centers, it simultaneously undermines the rationale for maintaining a competing in-house GPU unit. Market watchers anticipate another strategic withdrawal as Intel sharpens its focus.