A semiconductor partnership between NVIDIA Corporation (NASDAQ:NVDA) and Intel Corp (NASDAQ:INTC) could benefit both companies, but one analyst sees a clear winner in the tie-up.
The NVDA, INTC Analyst: JPMorgan analyst Harlan Sur maintained an Overweight rating on Nvidia with a $215 price target.
Sur maintained an Underweight rating on Intel with a $21 price target.
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The Analyst Takeaways: An agreement to co-develop some products together and for Nvidia to buy $5 billion in Intel stock was announced on Thursday.
"At face value, the collaboration is positioned to benefit both companies on a few fronts," Sur said in a new investing note.
The analyst said the partnership will see products co-developed, Intel's competitive position likely improve versus Advanced Micro Devices (NASDAQ:AMD) and Nvidia gain access to new revenue streams.
While the deal could help Intel, Sur believes the tie-up will benefit Nvidia the most. "More value seen accruing to Nvidia in Intel collaboration."
Nvidia's "addressable customer base" also widens with the ability to target those who require or have a preference for x86 compute in their AI infrastructure, Sur added.
"We view NVDA as by far the larger beneficiary of this arrangement, as it opens up an entirely new swim lane for revenue growth (iGPU market) and broadens NVDA's market opportunity for rack-scale AI systems."
Sur also stated that the partnership might be "only marginally positive" for Intel on the Client PC side. The analyst pointed out that the partnership came without a commitment to Intel Foundry.
"Both lauded TSMC as a ';world-class foundry' and valued partner, and left the door open as to what extent INTC's own process technology would be utilized for these co-developed products."
He said the companies did not commit to a timeline on the new products and estimated that they could be launched in 2027.
NVDA, INTC Price Action: Nvidia stock is down 0.3% to $175.78 on Friday, versus a 52-week trading range of $86.63 to $184.48. Nvidia’s stock is up 27.1% year-to-date in 2025.
Intel stock is down 2.0% to $29.94 on Friday versus a 52-week trading range of $17.66 to $32.38. The stock hit new 52-week highs on Thursday on the partnership news, and shares are now up 48.1% year-to-date in 2025.
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