AMD warns the Intel and Nvidia partnership is a risk to its business

The Nvidia/Intel partnership announced in mid-September is putting pressure on AMD, as stated in its November 2025 quarterly report. According to the document, Nvidia’s $5-billion stake in Intel is an economic and strategic risk, especially in a market that is “highly competitive and rapidly evolving.” If the two can create an RTX SoC that integrates the expertise of both companies, AMD could lose its advantage in APUs, especially those designed for handheld consoles. Aside from that, it also cited its competitors' business practices, saying how they take advantage of their market positions to put AMD on the back foot.

“Intel Corporation (Intel) uses its microprocessor market position to price its products aggressively and target our customers and channel partners with special incentives. These aggressive activities have reduced and may reduce our unit sales and average selling prices for many of our products, adversely affecting our business,” AMD said in its report. “Similarly, NVIDIA Corporation (NVIDIA) leverages its market position in data center GPU, financial resources, and proprietary software ecosystem to promote its systems and influences [sic] customers who do business with us.”

Even though AMD is an established, relatively stable company, we must also consider that it faces industry giants. For example, despite Intel’s recent financial woes and its Intel Core desktop chips losing ground versus Ryzen CPUs, it still has a massive market share lead over AMD. Aside from that, Nvidia, currently the most valuable company on Earth based on its $5 trillion market cap, has a massive war chest, allowing it to throw as much cash as it wants to gain a market advantage. While designing a CPU with a powerful integrated GPU will certainly take a lot of time and effort, the partnership of these two companies can potentially result in a new product line that will negate AMD’s technical advantage.

“NVIDIA announced a partnership and investment in Intel to partner on new data center and client platform products,” writes AMD. “This partnership may result in increased competition and pricing pressure for our products, which could materially adversely impact our business, financial condition, and margins.” While it’s unlikely to just throw in the towel and surrender in the face of stiffer competition, it’s also managing the expectations of its investors, telling them what it’s realistically facing.

Market leaders certainly shouldn’t abuse their position to gain an unfair advantage over competitors. But even though AMD feels it will face a significant challenge with the Nvidia/Intel partnership, we welcome it, as it will push AMD to continue innovating and offer better pricing to survive. In the end, we will have a more dynamic market and better choices for the average consumer.

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