WSJ reported (subscription) Monday morning that Intel and AMD are teaming up to develop and launch a processor chip specifically meant for running resource-intensive video games on lightweight laptops.

Using Intel’s 8th generation Core processor and an AMD Radeon graphics processor, the duo are trying to “appeal to serious gamers,” according to an AMD spokesperson. It may not compete with the latest Ryzen line of mobile processor units from AMD, but it is certainly a strategy against the growing dominance of NVIDIA in the gaming graphics hardware segment. The Intel-AMD partnership on this chip could represent a joint move to push back on NVIDIA’s aggressive launch schedule and powerful graphics components that have long been gamer favorites.

Intel has essentially worked with Sunnyvale-based Advanced Micro Devices to develop and integrate the necessary memory technology and graphics chip from Radeon Technologies. It had earlier noted that was unable to deliver a robust gaming experience in the 11 and 16mm laptop categories.

The gaming segment is one of the bright spots in the otherwise dull and declining PC market, and this is where the Intel-AMD partnership will make the greatest impact.

According to data from GFK, portable gaming PCs grew revenues by 24 percent over last year, while the gaming desktop PC segment saw a 55 percent jump in revenues. Even excluding North America, the global revenues of gaming desktops and notebooks collectively came in at a not-too-shabby €1.5 billion, or about $1.7 billion.

Shares of AMD, which have been languishing in a sideways trend over the past ten months, popped 7.19% percent on the news – past the $12 mark – in Monday’s premarket trading, and are currently trading at $11.70 at the time of this writing.

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Sources: CPUBenchmark|Digitimes|GFK