Intel Corporation INTC 2.23% and Advanced Micro Devices, Inc. AMD 1.16% on Monday announced a new partnership in which Intel will now be using AMD’s Vega GPU in its multi-chip high-end notebook packages.

The deal is certainly good news for AMD investors, but it may be a slight negative for rival chipmaker NVIDIA Corporation NVDA 0.12%.

The Analyst

Deutsche Bank analyst Ross Seymore.

The Rating

• Deutsche Bank maintains a Hold rating and $145 price target for Nvidia.
• The firm maintains a Hold rating and $12 target for AMD.
• The firm maintains a Buy rating and $45 target for Intel.

The Thesis

Seymore expects the financial impact of the partnership will likely be minimal, but that AMD should see the largest potential positive impact due to its relatively small market cap. Without clear details on the economics of the deal, Seymore said he’s unwilling to put a dollars-and-cents value on its potential impact.

For Intel, Seymore said the deal serves to help the company address a larger notebook marketand helps validate its EMIB technology.

For AMD, he said the new deal is yet another example of how AMD can monetize its intellectual property.

While Seymore said the deal will likely have little financial impact on Nvidia, the market will likely see it as an “incremental negative.”

“The financial impact, if any, is likely to be…

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