Nvidia-Intel Deal Creates $50B TAM Expansion, Pressures AMD

Nvidia's strategic $5 billion investment in Intel has drawn bullish analyst reactions, with William Blair's Sebastien Naji maintaining a Buy rating. The partnership integrates Intel's CPUs into Nvidia's NVL72 racks via NVLink, unlocking incremental revenue streams amid robust demand for AI infrastructure.

Intel gains a data center client and foundry funding, while Nvidia accesses the x86 ecosystem and strengthens its GPU PC foothold. CEO Jensen Huang projects the deal expands Nvidia's total addressable market by $50 billion—a direct challenge to AMD's competitive position.

The MOVE coincides with IDC's forecast of 220 million AI PC shipments by 2028, signaling accelerating enterprise adoption of hybrid computing architectures. Semiconductor consolidation continues as chipmakers position for the next phase of AI hardware deployment.