AMD and Intel are reportedly teaming up to take on Nvidia

Reuters/Arnd Wiegmann

echnicians of AMD, the world's second-largest maker of computer microprocessors after Intel Corp, display wafers for the media in the eastern German city of Dresden.

• Intel and AMD are teaming up to develop a new chip that would combine the traditional central processing unit and a graphics processing unit.
• Both companies are rising early Monday after the news.
• Nvidia, which commands a large share of the GPU market, is slipping.

Intel and AMD shares are rising after the two companies announced a plan to take on Nvidia, the largest maker of graphics chips.

Intel is up 0.55% and AMD is higher by 7.01% ahead of Monday's opening bell. Meanwhile, Nvidia is slipping on the news, down 1.31% at $205.95.

Intel is set to announce a partnership with AMD to produce a processor that would combine an Intel central processing unit (CPU) with an AMD graphics processing unit (GPU), according to the Wall Street Journal. The chips would be intended to be for use in laptops and capable of handling high-end video gaming.

The partnership between Intel and AMD hopes to steal some of Nvidia share of the GPU market with a single integrated chip.

Today's top video games often require a traditional CPU to be augmented with the graphics power of a GPU. Intel has been the leader in CPUs, while Nvidia has commanded a large portion of the GPU market. AMD makes both GPUs and CPUs and recently released a new line of both that hopes to compete with Intel and Nvidia.

Read more about AMD's partnership with Tesla here.

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