At last check shares of Nvidia were up 3.7% to $597.42, while Intel dropped 4.8% to $64.96. Both are based in Santa Clara, Calif.
Nvdia said it will release its Grace server processor in 2023. It is designed to handle tasks like training artificial intelligence algorithms.
Stocks Down but Off Earlier Lows, Yields Creep Higher
In a speech announcing the chip, Nvidia Chief Executive Jensen Huang called the new server chip the "final piece of the puzzle" that will join Nvidia's graphics and networking chips to form the "basic building block of the modern data center," Reuters reported.
The chip is based based on technology from the United Kingdom's Arm Ltd. In September, Nvdia said it had reached a deal to acquire Arm from Softbank for $40 billion.
Arm's technology goes into chips powering billions of devices shipping each year - everything from smartphones to video cameras to hard drives to washing machines.
Federal regulators opened an investigation into the acquisition in February.
In February, Nvidia reported fiscal-fourth-quarter results that topped analyst estimates for both earnings and revenue.