Baird, Wedbush Analysts Bullish on Nvidia–Intel Alliance

Wall Street analysts are reacting positively to the strategic partnership between Nvidia and Intel, viewing it as a win for Intel and a market expansion for Nvidia. The deal involves Intel manufacturing Nvidia-custom x86 CPUs for data centers and new x86 chips with integrated Nvidia RTX GPU chiplets for PCs. This collaboration could bolster Intel's PC market share and extend Nvidia's reach into PC and data center segments.

Nvidia's $5 billion investment in Intel's common stock at $23.28 per share has already moved markets, with Intel shares surging 28% and Nvidia stock gaining 4%. Baird analysts highlight the deal as incrementally positive for Intel, providing a significant boost to Intel Foundry Services and validating CEO Pat Gelsinger's strategy of securing high-profile manufacturing partnerships.