Intel (INTC) and Advanced Micro Devices (AMD) are partnering for a computer chip that combines the former’s processor with the latter’s graphics unit in an effort to compete with Nvidia (NVDA), the leader in graphics chips. Separately, and ahead of quarterly results later this week, Morgan Stanley analyst Joseph Moore raised his price target on Nvidia to $210.

INTEL, AMD PARTNERSHIP: Christopher Walker, VP of the Client Computing Group and general manager of the Mobile Client Platform at Intel, stated in a post to an Intel blog: “We often talk about our focus on driving innovation for the enthusiast community, a targeted but growing segment of the PC market. This point is underscored by what we have been delivering with our Intel Core X-series processors, Intel Core H-series mobile processors and, more recently, the first of our 8th Gen Intel Core desktop processors. Each product line offers a range of new capabilities, workloads and form factors to cater to the diverse needs of enthusiasts. Today, we’re sharing initial details on a new product that does exactly that, reducing the usual silicon footprint to less than half that of standard discrete components on a motherboard. That’s more freedom for OEMs to be creative and deliver innovative thin and light designs with improved thermal dissipation. It also delivers space to add new features, create new board layouts, explore new cooling solutions or increase battery life. The new product, which will be part of our 8th Gen Intel Core family, brings together our high-performing Intel Core H-series processor, second generation High Bandwidth Memory and a custom-to-Intel third-party discrete graphics chip from AMD’s Radeon Technologies Group – all in a single processor package.” The Wall Street Journal had previously reported that the two companies were teaming up in an effort to compete with Nvidia and as they hope to steal some of its share of the GPU market with a single integrated chip.