The Intel-Nvidia Deal Looks Like Terrible News for AMD

Core Viewpoint - The partnership between Intel and Nvidia poses a significant threat to AMD's market share in both the PC and data center sectors, where AMD has seen substantial growth over the past decade [2][4][13]. Market Dynamics - AMD's unit market share in PCs and servers reached approximately 24% in Q2, a notable increase from 11% in 2016, but this growth may be challenged by the new Intel-Nvidia collaboration [2]. - The Intel-Nvidia deal will produce systems-on-a-chip (SOCs) that combine Intel's CPU cores with Nvidia's RTX GPU chiplet, enhancing performance in both PC and data center markets [3][12]. AI PC Landscape - The new CPUs from Intel and Nvidia are specifically targeting the AI PC market, which has not yet gained significant traction due to current limitations in AI computing capabilities of existing PCs [6][7]. - For AI PCs to succeed, they must be capable of running advanced AI models locally, which would greatly enhance their appeal [8][10]. Competitive Analysis - AMD's Ryzen CPUs include neural processing units and GPUs for AI workloads, but their performance (126 TOPs) is significantly lower than Nvidia's dedicated GPUs, which can reach up to 1,824 TOPs [11]. - The integration of Nvidia GPUs with Intel CPUs could lead to improved latency, power efficiency, and cost-effectiveness, making it a formidable challenge for AMD in the gaming laptop and AI PC markets [12][13].