Nvidia’s (NASDAQ:NVDA) $5B investment in Intel (NASDAQ:INTC) and collaboration to develop PC and data center chips are good for KLA Corp. (NASDAQ:KLAC) and other semiconductor equipment makers, UBS said.
“First and foremost, we see this as positive for semicaps — especially KLAC — as it increases the likelihood that INTC will be able to build a viable foundry business, and improves the longer-term capex outlook for INTC (though probably doesn’t change much for C2026, where we still see a meaningful decline in capex),” UBS analyst Timothy Arcuri wrote in a note to clients. “We can see how the market could read this negatively for AMD (AMD), but ultimately this investment doesn’t help INTC’s product roadmap because we think it’s more on the foundry side. Over the longer term, if investments like this accelerate INTC’s separation of the product business and more fundamentally frees Intel Products up to use TSMC (TSM), one could argue this is negative for AMD, but over a 3 to 4 year time horizon.”
Arcuri kept his Neutral rating on Intel after the deal but upped his price target to $35 from $25.
