AMD Stock (AMD) on Edge: Analysts Sound Alarm as NVIDIA–Intel Deal Reshapes Chip Landscape

Wall Street's flashing red on AMD as the semiconductor giant faces mounting pressure from an unlikely alliance.

The Shifting Sands

NVIDIA and Intel—once fierce rivals—just inked a game-changing partnership that's sending shockwaves through the chip sector. Analysts are scrambling to reassess AMD's competitive position, with several major firms downgrading their outlooks.

Risk Factors Mounting

Supply chain advantages once exclusive to AMD now look increasingly vulnerable. The NVIDIA-Intel combo creates a vertically integrated behemoth that could outmaneuver standalone players on pricing, R&D, and market access.

Market Reaction

Trading floors are buzzing with contingency plans as institutional money starts repositioning. The deal doesn't just change the competitive landscape—it potentially resets valuation models across the entire semiconductor space.

Because nothing says 'healthy market' like two titans teaming up to squeeze out the third—just what shareholders love to see.

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Lynx Equity Sees Clear Negative Impact

Lynx Equity said the deal is “clearly a negative for AMD.” The firm explained that the partnership revives an earlier Intel project to build custom x86 CPUs for Nvidia’s AI systems. This is a direct threat to AMD, since one of its key strengths has been an AI platform that pairs x86 CPUs with GPUs to handle a wide range of data center tasks. Nvidia’s Arm-based CPUs have been limited mostly to networking, but Intel’s involvement could close that gap quickly, eroding AMD’s edge.

Lynx also warned that the deal reaches beyond data centers. Intel plans to integrate Nvidia’s RTX GPU chiplets into its client SoCs, which could increase competition in the PC market. AMD has gained ground there in recent years, but Intel has the packaging tools to bring these products to market, which could help it win back share from AMD.

Stifel Sees Only a Modest Negative for AMD

Stifel also weighed in on the Intel–Nvidia announcement, but with a less severe view than Lynx. The analyst said the deal combines Intel’s long history with x86 CPUs and Nvidia’s leadership in GPUs, creating stronger offerings in both data centers and PCs.

For Intel, Stifel highlighted the chance to finally compete more directly in high-density AI infrastructure, where it has struggled to gain ground. For AMD, this means tougher competition ahead, but Stifel called the impact a “modest negative.”

The analyst added that the timing works in AMD’s favor for now. It could take time before Intel and Nvidia roll out their new joint products, which gives AMD some room to defend its current position in servers and PCs.

Which Chip Stock Is the Best Buy?

Turning to Wall Street, out of the three stocks mentioned above, both Nvidia and AMD carry notable upside potential. Nvidia has a Strong Buy rating with about 20% upside to its average price target of $211.25. Meanwhile, AMD is rated a Moderate Buy, with analysts seeing nearly 19% upside to $188.00. Intel, on the other hand, has a Hold rating and a downside risk of about 23% from its current price, with a target of $23.61.