Superior Micro Units (AMD) has spent 2025 clawing from “credible challenger” to a real second engine within the AI arms race.
Living proof is that its administration bumped an annual cadence in accelerators with MI325X heading into mass manufacturing and MI350 slated for later this yr, whereas unveiling a power-packed new AI server plan for 2026.
Maybe the largest sign this yr was that OpenAI is about to undertake AMD’s newest chips, placing actual logos behind its reasonably bold roadmap.
The inventory has ridden that momentum.
AMD shares are up greater than 30% year-to-date, regardless of the air pockets round data-center prints and export-license headwinds. Following a summer time wobble, the tape nonetheless exhibits a large 52-week vary of $76 to $187, which underscores how sizzling and unstable the AI commerce has been.
Enter the week’s curveball in Nvidia’s (NVDA) huge $5 billion stake in Intel (INTC) , together with a multi-year product pact that pipes NVLink deeper into x86 whereas teasing PC SoCs mixing Intel CPUs with RTX GPU chiplets.
On the face of it, it’s clearly one other feather in Nvidia’s cap, including to its moat in each knowledge middle and shopper, and making life harder for AMD. Then once more, the stake is comparatively small in comparison with Nvidia’s highly effective scale, and the timelines are multi-year, which successfully mutes near-term influence.
Nevertheless, we now have a serious twist with a prime Financial institution of America analyst, Vivek Arya, and his crew dropping an sudden tackle AMD, publish the Nvidia/Intel tie-up.
BofA’s Vivek Arya sticks with AMD regardless of the Nvidia-Intel tie-up.
Picture supply: Cheng/AFP by way of Getty Pictures
BofA’s Vivek Arya stands by AMD, even amid Nvidia-Intel deal
AMD inventory has been jittery this previous week on the again of the Nvidia-Intel deal, however Financial institution of America’s Vivek Arya, a five-star title on Wall Avenue, simply reiterated his purchase ranking and $200 value goal for AMD (27% upside from present costs).
His case presently rests on AMD’s unimaginable potential to proceed using secular AI development whereas chipping away at CPU market share from Intel, even with Nvidia’s new $5 billion guess on Intel.
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Arya feels the worth goal bump is “justified by AI growth and CPU share gains offset by slower growth in cyclical embedded/console markets.”
Actually, he goes on to say that the Intel-Nvidia collaboration may flip right into a tailwind for AMD. That’s as a result of the partnership focuses on x86 structure, which Intel licenses to AMD, and which primarily underpins PCs and servers, that means a extra sturdy ecosystem aids each.
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On a facet observe, Arya’s crew has additionally up to date its Nvidia view, reiterating a purchase ranking on Nvidia with a $235 goal, whereas assigning a 37x a number of to 2026 earnings. He feels his take his justified on account of Nvidia’s “leading share in fast-growing AI compute and networking markets.”
Key factors for Nvidia, Intel, and AMD buyers:
- AMD inventory continues to be buying and selling properly beneath Arya’s $200 goal.
- Nvidia’s Intel tie-up will strengthen x86, serving to each Intel and AMD in the long run.
- Within the close to time period, AMD has wholesome wiggle room to develop with out new aggressive headwinds.
Nvidia-Intel: what the deal is, why it issues
Nvidia agreed to purchase $5 billion value of Intel’s frequent inventory and companion on “multiple generations” of customized knowledge middle and PC merchandise.
Intel might be concerned within the design and manufacture of customized x86 CPUs, together with NVLink baked in, whereas Nvidia will layer these Intel chips into its rack-scale AI platforms. So in essence, Nvidia will get a much bigger x86 beachhead, whereas Intel will get a robust GPU ally.
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For Nvidia, this leans into energy.
For perspective, it posted Q2 FY26 income of $46.7 billion, which jumped 56% year-over-year as AI demand retains ripping, whereas Knowledge Middle gross sales had been $41.1 billion. Furthermore, unbiased trackers peg Nvidia’s share of data-center AI accelerators at an enormous 90%+.
For Intel, the optics and entry matter, and the announcement led to an enormous 23% one-day pop in Intel inventory.
- Roadmap: Built-in laptop computer SoCs layer in Intel CPUs with Nvidia RTX GPU chiplets, which is an enormous swing at reclaiming PC management.
- Influence: Nvidia broadens x86 attain and solidifies its AI moat, whereas Intel features relevance and design wins in knowledge middle and shopper house.
- Timing: Merchandise are a number of years out, so near-term gross sales influence is modest, however optics grow to be much more favorable for Nvidia.
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