- Analysts say that the NVIDIA-Intel agreement could reshape AI and PC markets around the world
- Industry comments focus on the impact of TSMC, AMD and Global Chip competition
- The largest technological transaction of the Sparks decade is on Foundry Future and Rivals
The recent announcement that NVIDIA would invest $ 5 billion in Intel was a shock for many in the technology industry.
The agreement will see the largest flea company in the world buying a 4% stake in its long -term rival, while Intel is committed to building personalized X86 processors for the NVIDIA IA infrastructure.
The agreement also includes plans for the X86 system fleas which combine Intel processors with NVIDIA GPUs, referring to the possibility of future APUs of the X86 data center.
The surprise announcement had an immediate impact on the markets. The value of Nvidia increased by around $ 150 billion to the news, more than the total capitalization of Intel. On paper, this was equivalent to a return of thirty times on its investment of $ 5 billion in less than 24 hours. Intel’s actions have also increased, marking their best day since 1987.
For Nvidia, the investment provides equity in a rival while obtaining a roadmap for new classes of products. For Intel, he provides both capital and a very necessary vote of trust in his ability to play a role in the AI era.
But that did the journalists and technological analysts do the news?
Analysts discuss what it means
In his reports, The register Cader the move as opening a new front for Nvidia, with Tobias Mann writing: “For Nvidia, the arrangement presents an opportunity to extend its GPU Empire to the integrated graphic arena, a space dominated historically by Intel and AMD.”
Describing NVLink as a key, Mann said that by integrating interconnection technology into its processor conceptions, “Nvidia will be able to offer NVL72 style systems based on its internal processors and Intel xeons, while addressing a larger share of the PC graphic arena.”
Serve the house“S Patrick Kennedy addressed the angle of the data center, noting that companies”, say that “Intel will create Nvidia-Custom X86 processors that Nvidia will integrate into its IA infrastructure platforms and offer the market”. It is certainly a net positive for Intel and probably a net negative for AMD.
On PCS, Kennedy reported: “Intel Build and will offer the X86 market system which integrates the NVIDIA RTX GPU chiplets.” The register warned that such progress “could mean bad news for the internal graphic division of Intel”, given the limited arc traction.
Questions about Intel Foundry are located alongside product plans.
Write Yahoo FinanceLaura Bratton argued: “The investment does not do much to solve what is undoubtedly the biggest Intel problem: how to repair her business manufacturing business in difficulty”, citing losses and a long road to cash production.
CNBC Citi skepticism relayed according to the integration of NVIDIA graphics will make Intel CPUs more competitive against AMD, citing analyst Christopher Danelry: “We doubt that it makes Intel processors more competitive because the integration of the graphics of another company would not make a processor more competitive since the processor is the main performance engine of a PC.”
PK Press Club“Stephen Nelis highlighted a possible and indirect boost of manufacture, writing that the partnership” could put the manufacturing technology of new generation of the manufacturer of fleas in difficulty on a stronger basis “, including confidence for the 14A process if joint products create a volume.
He added that engineers will collaborate to “transform Nvidia’s technology into a physical chip made at Intel”.
Analyst Jack Gold said: “It should be said that, although this arrangement is very beneficial for the two parties, some losers are in particular AMD can be disadvantaged as a result of this partnership, although they are doing well with their own efforts of AI in GPU and CPU. Despite, having two major competitors combining their efforts is not exactly a positive result for DMA.”
Gold also suggested that the agreement could possibly extend to the manufacture of Intel: “Any relationship with Nvidia at this stage, not to mention explicit foundry services, should be considered as a possible extension of the partnership in the future, and if that occurs, it would be a major victory for the services of Intel Foundry.”
Live mobile world reported that at the conference call that followed the announcement, NVIDIA and the CEOs of Intel faced many questions about NVIDIA using Intel Foundry technology.
The CEO of Nvidia, Jensen Huang, played things saying: “I think we would both say that TSMC is a world class foundry. I just can’t overestimate the magic that is TSMC. ”
The Economist has linked collaboration to the broader NVIDIA strategy and the role of NVLink, by writing: “This helps to strengthen the position of Nvidia as a partner of choice in the IA world.”
The news site has also cited analysts of Futurum Group, who said: “The EC economy will take place on systems where Nvlink is the norm, and Nvidia decides who can be connected.”
analog eenewsNick Flaherty sounded a note of caution for Intel, suggesting that the announcement “opens the way to Nvidia to buy the design activity of the flea manufacturer in intel difficulty”.
He linked the participation of $ 5 billion in “a key negotiation position in any future negotiation”, while recognizing that the processes’ choices remain open and that the two companies have underlined future product announcements rather than foundry commitments.
