An Intel Core Processor With Custom AMD Graphics Is Coming

Shares of Advanced Micro Devices, Inc. (NASDAQ: AMD) surged higher Monday morning after confirming a new relationship with rival Intel Corporation (NASDAQ: INTC).

AMD and Intel appear to be putting their rivalry on hold amid a newer and greater competitor in NVIDIA Corporation (NASDAQ: NVDA). As part of a new agreement, the two companies will collaborate and co-develop an Intel Core microprocessor which features a custom AMD Radeon graphics core.

A Premium Experience

Intel approached AMD with the idea to create a "thinner, lighter, more powerful enthusiast mobile platforms that deliver a premium experience," Intel said in a press release. The two companies will also collaborate to create a "stronger combination of performance-level processors and discrete graphics that open the door to even smaller form factors."

"Our collaboration with Intel expands the installed base for AMD Radeon GPUs and brings to market a differentiated solution for high-performance graphics," said Scott Herkelman, vice president and general manager, AMD Radeon Technologies Group. "Together we are offering gamers and content creators the opportunity to have a thinner-and-lighter PC capable of delivering discrete performance-tier graphics experiences in AAA games and content creation applications.

"This new semi-custom GPU puts the performance and capabilities of Radeon graphics into the hands of an expanded set of enthusiasts who want the best visual experience possible."

AMD was up more than 6 percent, while Intel traded up less than 1 percent on the news.

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