Intel shares dropped approximately 4.2% in premarket trading on Monday. The decline followed Nvidia's announcement of the N1X, its first PC processor developed in partnership with Microsoft.
This partnership directly challenges the PC market long dominated by Intel and AMD. Investors expressed competitive concerns following the announcement at the Computex conference.
Nvidia's news overshadowed Intel's simultaneous launch of its Xeon 6+ processors and an expanded Ethernet portfolio. Intel also provided updates on its next-generation AI accelerator, code-named Crescent Island.