The chip is intended for laptops that are thin and lightweight but powerful enough to run high-end videogames—attributes that lately have been driving sales in an otherwise waning market for personal computers.
It will be the competitors’ first collaboration since the 1980s, said analyst Patrick Moorhead of Moor Insights & Strategy, and reflects complex shifting dynamics in the semiconductor industry.
Chipping away at Nvidia
For decades, Intel and AMD have scrapped for market share in PC chips. Intel has been dominant for much of that time, lately holding a nearly 100% share, according to Mercury Research. But AMD recently launched chips that represent the first real competition for Intel in that market for years.
AMD also recently revamped its graphics-chip designs, looking to take share away from Nvidia, which has nearly 80% of the market for stand-alone graphics chips by revenue.
Intel competes head-on with Nvidia in driving artificial-intelligence calculations for large internet companies. For several quarters, Nvidia’s business selling chips to data centers has been up by triple digits from the previous year, presumably displacing sales of Intel processors. Intel last year acquired technology to compete for that business with the purchase of Nervana Systems, and it expects those chips to start shipping by the end of the year.