Back in December, Intel (INTC) said it was giving up on plans to develop a discrete graphics chip which had been code-named Larrabee. The move was seen as a boon to Nvidia (NVDA) and Advanced Micro Devices (AMD), which would have had a new rival if the project had gone forward.
In a blog post yesterday, the chip maker confirmed that it has abandoned the project.
“We will not bring a discrete graphics product to market, at least in the short-term,” the company said in the post. “As we said in December, we missed some key product milestones. Upon further assessment … we are focused on processor graphics, and we believe media/HD video and mobile computing are the most important areas to focus on moving forward.”
Chris Caso, an analyst with Susquehanna Financial Group, asserts in a research note that the news could be seen as a positive for Nvidia – for the same reason the market liked the news the first time around.
In today’s trading:
- NVDA is up 35 cents, or 2.8%, to $13.04.
- AMD is up 36 cents, or 4.4%, to $8.51.
- INTC is up 33 cents, or 1.6%, to $21.18.