Intel's New Gaming Chip Could End AMD's Handheld Gaming Monopoly
Key Points
Intel unveiled its Panther Lake PC CPUs at CES 2026.
Panther Lake delivers performance and efficiency improvements, thanks in part to the Intel 18A process.
The company is eyeing the handheld gaming PC market, which is dominated by AMD.
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Intel (NASDAQ: INTC) made a splash at CES 2026 with its new Panther Lake family of laptop CPUs. Panther Lake is built on the Intel 18A process and is expected to deliver major improvements in battery life and performance compared to Intel's last-generation chips. More than 200 PC models powered by the new chips are on their way, with devices expected to ship later this month.
Panther Lake poses a real threat to AMD (NASDAQ: AMD) in the laptop market, but the company has even more to worry about. Intel is reportedly gunning for the handheld gaming PC market, which AMD currently dominates.
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Image source: Intel.
Panther Lake is an efficient gaming monster
Some of the models in Intel's Panther Lake lineup include the company's latest and greatest Arc integrated graphics. The top-tier chip features 12 graphics cores and delivers up to 77% better gaming performance compared to Lunar Lake, Intel's last-generation chip.
In an article on Engadget, a reviewer noted that he was able to play Battlefield 6 on a Panther Lake ultraportable at a 1080p resolution at 190 frames per second. More powerful hardware, combined with Intel's updated upscaling and frame generation technology, enabled the impressive performance.
Intel claims that the top-tier Panther Lake chip trounces AMD's HX 370 by more than 80% in gaming, and that it can go toe-to-toe with Nvidia's discrete RTX 4050 mobile graphics chip. While real-world benchmarks will be needed to verify these claims, Panther Lake appears to be a gaming powerhouse.
The chips are also incredibly efficient, which is critical for battery-powered devices. In laptops, Intel is claiming up to 27 hours of battery life. The Intel 18A manufacturing process features backside power delivery, which moves power circuitry to the back of the chip. This can meaningfully increase efficiency, and it's one driver behind the impressive battery life of Panther Lake devices.
A booming market may be unexpectedly up for grabs
The handheld gaming PC has grown into a multi-billion-dollar market. There is a slew of options, including Valve's Steam Deck and models from Asus and Lenovo. At the start of 2025, IDC pegged the cumulative number of handheld PC units shipped at 6 million, with an expected 2 million additional sales in 2025. Notably, this estimate excluded smaller vendors, instead focusing on just the major players.
One thing nearly all handheld PCs have in common is the use of AMD chips. The Steam Deck is powered by an AMD APU, which combines CPU and GPU cores. The Asus ROG Ally utilizes a newer AMD chip with enhanced graphics capabilities. The upcoming Lenovo Legion Go is also powered by a newer AMD chip. Up until now, AMD has dominated this market.
Panther Lake could change things. Intel is reportedly planning to produce variants of Panther Lake chips tailored for gaming handhelds, potentially tuning the chips for even better gaming performance. Older Intel chips have previously appeared in some handheld devices, but not nearly as many as AMD chips. With Panther Lake, the company has a real shot at challenging AMD.
A new revenue stream for Intel
Panther Lake could halt Intel's market share slide in the laptop market, which alone would be great news for the company. Seriously challenging AMD in the handheld PC market is icing on the cake, representing a new revenue stream for Intel.
How Panther Lake's performance holds up when power usage is scaled down, necessary for handheld devices, remains to be seen. Valve is reportedly working on a new version of the Steam Deck, but the company has stated that it's waiting for significant performance improvements before moving forward. Panther Lake could be good enough, although this would likely be a 2027 story at the earliest.
While Intel had largely ceded the handheld PC market to AMD in the past, the company is using Panther Lake to regain its foothold. It will take time for any Intel-powered handhelds to hit the market, but AMD's dominance appears to be at risk.
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Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Nvidia. The Motley Fool has a disclosure policy.
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