Is AMD stock overreacting to the Nvidia-Intel partnership today?

amd stock overreacting to nvidia intel news [https://invezz.com/wp-content/uploads/2025/05/image23.png] Investors are cheering Intel Corp (NASDAQ: INTC) this morning after the AI chips giant – Nvidia Corp (NASDAQ: NVDA) announced a $5 billion investment in the embattled semiconductor firm. According to the companies’ joint press release, the announced partnership goes beyond equity – it includes co-development to custom data centre and PC chips, leveraging Nvidia’s AI stack and Intel’s x86 ecosystem. For INTC, this is a strategic lifeline that arrives shortly after the US government took a 10% stake in the chipmaker. For its Santa Clara-headquartered peer, Advanced Micro Devices Inc (NASDAQ: AMD), however, the Nvidia-Intel news isn’t boding well given the AI stock is down over 5.0% at the time of writing. WHAT THE NVIDIA-INTEL NEWS REALLY MEANS FOR AMD STOCK The aforementioned sell-off in AMD shares following the Nvidia-Intel news today appears more sentiment-driven than fundamentally justified. NVDA’s investment in the beleaguered chipmaker does not involve the latter’s Foundry business. It’s a non-exclusive, non-disruptive, and strategically narrow partnership, which means Nvidia is not abandoning its existing ecosystem (TSMC, Arm, CUDA…