Advanced Micro Devices Inc ( AMD ) shares are moving lower Thursday after Nvidia Corp ( NVDA ) revealed a surprise $5 billion investment in Intel Corp ( INTC ) , raising competitive concerns for AMD.

What Happened: Nvidia ( NVDA ) took a stake in Intel ( INTC ) on Thursday and announced plans to jointly develop chips for AI data centers and personal computers.

AMD shares are facing selling pressure as the surprise deal is being viewed as a competitive threat to AMD’s share of data center and PC markets. AMD, Nvidia ( NVDA ) and Intel ( INTC ) are peers in the semiconductor space.

Nvidia ( NVDA ) said it purchased $5 billion of Intel ( INTC ) common stock at $23.28 per share. The companies will focus on integrating the strengths of Nvidia’s AI and accelerated computing with Intel’s leading CPU technologies.

Specifically, Intel ( INTC ) will manufacture Nvidia ( NVDA )-custom x86 CPUs for data centers and x86 RTX SoCs for PCs, which will integrate Nvidia RTX GPU chiplets. All of these components will be connected internally using Nvidia’s NVLink technology.

The deal combines Nvidia's ( NVDA ) AI-accelerated computing with Intel's ( INTC ) x86 ecosystem, putting Intel ( INTC ) in a position to potentially challenge AMD's EPYC server processors, Ryzen CPUs and Instinct GPUs across hyperscale, enterprise and consumer markets.

AMD Price Action: AMD shares traded as low as $149.85 on Thursday. The stock was down 0.74% at $157.99 at the time of publication, according to Benzinga Pro.

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