Shares of Intel surged in premarket trading following reports of a potential collaboration with Nvidia on its 2028 GPU strategy. DigiTimes reported that the partnership would involve Intel working on Nvidia's Feynman microarchitecture, alongside Apple. This news signals a possible shift in the competitive semiconductor market and the future of AI technology.

The collaboration, if confirmed, would see Intel producing portions of the Feynman GPU's input/output die, leveraging its 18A or 14A technologies. Intel is expected to handle a quarter of the final packaging. This could be a much-needed boost for Intel, which has faced challenges in keeping pace with the demand for AI server chips.

The report comes after Nvidia invested in Intel. Intel's recent financial struggles, including an underwhelming revenue outlook, have put pressure on the company. Investors are now watching to see how this potential partnership will impact both companies' financial performance. The focus is on how it will affect the semiconductor industry.

This potential deal could reshape the competitive dynamics of the chip industry. With TSMC handling the majority of the packaging, and Apple also involved, the move hints at strategies to navigate U.S. chipmaking rules, and maintain relationships with key suppliers. The market will be keenly watching for official announcements from either company.