Analysts offered sharply different takes on Nvidia Corp.'s (NASDAQ:NVDA) $5 billion investment in Intel Corp. (NASDAQ:INTC), with TF Securities' Ming-Chi Kuo touting the partnership's potential to reshape the AI PC landscape while Deepwater Asset Management's Gene Munster cautioned that Intel's soaring stock reaction looked excessive.
Kuo Sees AI PC And Server Upside
Kuo said Nvidia and Intel's collaboration could mark a turning point in the development of AI-powered PCs.
"For Nvidia, developing its own Windows-on-ARM processors carries high uncertainty; for Intel, establishing a competitive edge in GPUs is difficult. Teaming up (CPU + GPU) could create powerful synergies," Kuo noted.
He also pointed to a significant opportunity in x86-based inference AI servers, especially in mid- and low-range enterprise deployments.
Intel's massive installed base and distribution channels, combined with Nvidia's CUDA platform, NVLink interconnect and AI chips, could capture meaningful demand.
On the supply chain side, Kuo said Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) remains firmly positioned.
"TSMC's advantage at advanced nodes is likely to persist at least through 2030. AI chips require leading-edge advanced nodes, so TSMC's AI-chip orders should be unaffected," he wrote, adding that shifts among competitors like Advanced Micro Devices, Inc. (NASDAQ:AMD) and Broadcom.com, Inc. (NASDAQ:AVGO) bear watching but pose limited risk overall.
See Also: Intel Wraps Up Altera Stake Sale In Bid To Streamline Business
Munster Calls Stock Rally Overdone
Munster argued that the market was getting ahead of itself.
"As of this recording, shares of Intel are up 25% … I think that this is an overreaction. I don't think they should be up 25%. I think they should be up more like five or 10% on this," he said in the Pressure Points video posted on social media.
Munster explained that Nvidia gains consumer PC exposure through Intel, whose $30 billion PC business accounts for over half its revenue.
Intel, meanwhile, benefits from associating with Nvidia's more than $4 trillion market capitalization and AI expertise.
However, he stressed the financial impact for Nvidia is small: even if deeper ties generated $3 billion annually, that would be about 1% of its 2026 revenue.
The analyst also suggested Intel's surge reflected "meme stock" dynamics, boosted by White House backing and Nvidia's endorsement rather than fundamentals.
The Kobeissi Letter Calls Move ‘Unprecedented'
Capital markets commentator The Kobeissi Letter described the sequence of events as "unprecedented."
Just weeks after President Donald Trump announced a 10% U.S. government stake in Intel worth $11 billion at $20.47 per share, Nvidia added a $5 billion investment.
"Intel's stock surged to $33.40+ pre-market, which put the Trump Administration's stake over +50% higher in 27 days," the post noted.
The commentator argued that the developments highlight how chip companies have become pawns in the U.S.–China tech war, adding that AI spending is now a dominant driver of U.S. GDP growth.
Price Action: Intel shares jumped 22.77% to close at $30.57 on Thursday before slipping 2.06% in pre-market trading on Friday. Nvidia climbed 3.49% during the session but edged down 0.39% pre-market, according to Benzinga Pro.
Benzinga's Edge Stock Rankings reveal that NVDA is trending higher in the medium and long term, though it shows a dip in the short term. Additional performance details are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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