Intel Corp. (INTC) and Advanced Micro Devices, Inc. (AMD) are locked in an escalating rivalry that now spans gaming and artificial intelligence, with each company carving out distinct battlegrounds for growth.

Intel Eyes Handheld Gaming Territory

Intel is making a serious play for handheld gaming with plans to develop dedicated hardware and software built around its Intel Core Series 3 "Panther Lake" processors. This isn't just about slapping existing chips into smaller devices. The company is creating an entirely optimized platform specifically for portable gaming systems.

At CES on Monday, Intel Vice President and PC Products GM Daniel Rogers laid out the company's ambitions, confirming work on a handheld-focused Panther Lake variant. Intel first unveiled Panther Lake last year and has already started rolling the chips out across mainstream PCs. Now the company wants to bring that same architecture to gaming on the go.

There's another wrinkle here worth noting: Panther Lake marks a major manufacturing milestone for Intel. It's the company's first processor built on its advanced 18A process node, which entered production in 2025. So this handheld push doubles as a showcase for Intel's manufacturing comeback.

Challenging AMD's Turf

Intel has been synonymous with PC gaming since the 1990s and expanded into graphics cards with its Arc GPU launch in 2022. But handheld gaming? That's different territory, and it's currently AMD's domain.

AMD made that dominance clear at CES by unveiling the Ryzen 7 9850X3D alongside new graphics and ray-tracing capabilities. The company has essentially owned this space while Intel focused elsewhere.

Rogers promised more details on Intel's handheld gaming products later this year, setting up what looks like a direct confrontation in a market where AMD has been running unopposed.

AMD's Momentum Spans Gaming and AI

While Intel plots its handheld entry, AMD keeps gaining ground. Recent Steam hardware survey data shows AMD's share among Windows gamers jumped 4.6 percentage points in December alone, bringing it within striking distance of Intel. Over the past year, AMD's gamer share climbed from 38.7% to 47.2%, a shift that reflects steady momentum in consumer preferences.

But the rivalry extends far beyond gaming hardware. AMD shares are up roughly 76% over the past year, powered largely by its artificial intelligence business. Investors are focused on AMD's partnership with OpenAI, its MI400 accelerators, and the Helios rack system expected to arrive in 2026.

Adding fuel to the optimism, reports suggest Alibaba Group Holding Limited (BABA) may order up to 50,000 MI308 AI chips, reinforcing confidence in near-term demand for AMD's data center products.

Analysts remain bullish. TD Cowen recently named AMD a top AI stock, framing the recent pullback as an attractive buying opportunity ahead of major product launches, including Helios.

Price Action: Intel shares were up 1.05% at $40.46 during premarket trading on Wednesday. Advanced Micro Devices shares were down 0.70%.