A powder metallurgy cold-work tool steel article of hot isostatic compacted nitrogen atomized, prealloyed powder. The alloy of the article includes the addition of niobium, which combined with the use of gas atomization, results in a fine carbide size distribution. This in turn results in improved bend fracture strength and impact toughness. In addition, as a result of isostatic compaction of nitrogen gas atomized prealloyed powder a fine distribution of carbides results to obtain a microstructure that achieves both improved toughness and wear resistance.