AMD Shares Experienced a Dip Today
In a significant move for the tech industry, Nvidia and Intel have announced a strategic partnership aimed at dominating the market for PCs using Artificial Intelligence (AI). This development has potentially cast a shadow over Advanced Micro Devices (AMD), with some analysts suggesting that AMD's stock valuation of 95 times earnings might no longer be justified.
The partnership between the two tech giants will see Nvidia's AI technology being incorporated into Intel's PC chip capabilities. Nvidia will also seamlessly connect its and Intel's architectures using NVLink, a high-speed interconnect technology.
The collaboration will focus on building new "custom data center and PC products," according to the announcement made by Nvidia CEO Jensen Huang and Intel executives on September 18, 2025.
As a result of this partnership, AMD's stock has taken a hit. Through 10:55 a.m. ET on Thursday, AMD is down 3%, with the current price standing at $157.85. The stock's day's range is between $149.85 and $158.63, and the 52-week range is between $76.48 and $186.65.
The volume for AMD stock today is 3,025,117, with an average volume of 56,390,265. Despite the downward trend for AMD, Nvidia's stock is up a couple of percentages in early trading on Thursday. Intel's stock, on the other hand, soared more than 25% in early trading on the same day.
Nvidia has also announced that it will buy $5 billion worth of Intel stock at $23.28 per share, representing a 6.5% discount to Intel's closing share price on Wednesday.
While the proposal for a collaboration involving AMD with Intel and Nvidia has not been detailed, the potential partnership could potentially be harmful for AMD's position in AI, PCs, and high-tech markets. Some analysts suggest that it might be a good time to sell AMD stock, given the current market dynamics.
However, it's important to note that the tech industry is known for its rapid changes and unexpected developments. As more details about the partnership emerge, the impact on AMD's stock and the broader tech market could become clearer.
In the meantime, investors are advised to closely monitor the situation and consider their strategies accordingly.
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