Most of us expected Larrabee will have a tough birth, won't immediately win performance and compatibility crowns, but we expected it should be able to compete in graphics and become a major player in the next few years.

This plan, is pushed to a distance future once again, and Intel's decision to cancel what we use to call Larrabee graphics chip surprised almost all of us. We did expect a lot of drama but we didn't expect that Intel will give away fairly easy.

AMD and Nvidia definitely benefit from the announcement, as shares of AMD rose 8.4 percent to close at $8.52 on the New York Stock Exchange, while Nvidia jumped nearly 13 percent to close at $16.09 at Nasdaq. At the same time, Intel fell 0.44 percent to $20.37.

It remains to be seen if Intel will continue to play with Larrabee behind closed doors and come back in a year of few, naturally only if it manages to make a competing part.

In the last three weeks, AMD jumped from $5.50 per share to $8.52 while Nvidia got up from $13.07 all the way to $16.09.

Intel will continue to develop its horrid integrated graphics, something that will continue to poison at least 50 percent of the overall market due to a simple reason that it can show a good 2D picture and play video, something that is enough for more than 50 percent of the graphics market.