Shares of Arm and Advanced Micro Devices dropped following Nvidia’s $5 billion investment in Intel, raising concerns about increased competition. However, analysts believe the impact on Arm and AMD may be less significant than initially feared. Companies that sell chipmaking equipment could see a boost if Intel’s foundry gains more business. Shares of Nvidia, Arm, and AMD fluctuated after the announcement, with some investors reacting quickly. Bank of America analysts expect limited near-term impact on AMD and Arm, maintaining “buy” ratings for both. Firms like ASML, Applied Materials, and Lam Research have seen gains since the deal. Bernstein analysts suggest sentiment for manufacturing equipment makers could improve. One question remains about potential business for Intel’s foundry, which was not addressed in the announcement. Nvidia’s move could indicate a preference for existing partners like TSMC, and a desire to build goodwill with the U.S. government, which now holds a 10% stake in Intel. Companies like Nvidia and Intel continue to praise TSMC, their important supplier, indicating collaboration with Intel would not significantly impact TSMC’s business.

Read more at Yahoo Finance: How Much Should Investors Read Into the Nvidia-Intel Deal? Here’s What Analysts Think