Analyst Says Nvidia 'Getting Into' Advanced Micro Devices (AMD) Business With Intel Deal

We recently published These 10 Stocks are Buzzing After Important Analyst Calls. Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the stocks analysts were recently talking about.

Ray Wang, Constellation Research founder and chairman, said in a latest program on CNBC that Nvidia’s latest $5 billion investment in Intel means the company is “getting into” AMD’s business.

“I mean, interesting move here by Nvidia and Intel. And if you’re looking at this, you’re wondering, is this good for Intel? Is it good for Nvidia, what does it mean for Advanced Micro Devices Inc (NASDAQ:AMD) overall? And if you break it down, it really means Nvidia’s getting into Advanced Micro Devices Inc (NASDAQ:AMD) business, using Intel as the way to get system on chips. That means taking a GPU, connecting it with NVLink, which is Nvidia’s connection platform, and getting the ability to bring Intel. So GPUs and CPUs come together, and of course that allows for better gaming desktops, amazing AI laptop processors, accelerated process units. The question really is what does that mean for Intel’s foundry business?” Wang said.

Macquarie Core Equity Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its second quarter 2025 investor letter:

“Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and manufactures semiconductors, including central processing units (CPUs), graphics processing units (GPUs), and other high-performance computing solutions for various markets like gaming, data centers, and AI. The company currently maintains a small market share for GPUs used for AI applications though by 2027, we believe the company will have product on par with the market leader, NVIDIA. Hyperscale customers with deep programming expertise may increasingly decide to dual-source high-end chips leading to much larger revenue and profit gains in coming years for AMD than investors currently expect.”

While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.