Nvidia has announced a $5 billion investment in Intel as part of a partnership to co-develop data center and PC chips. The deal comes shortly after Intel secured backing from the U.S. government.
The investment will be made at $23.28 per share. Following the news, Intel stock surged 22.8% to $30.57, marking its best trading day since October 1987. Nvidia shares also closed 3.54% higher.
According to Nvidia CEO Jensen Huang, the collaboration combines Nvidia’s AI and accelerated computing expertise with Intel’s CPUs and x86 ecosystem, aiming to create a stronger foundation for the future of computing.
This move places Nvidia alongside SoftBank and the U.S. government in supporting Intel’s turnaround strategy. Earlier this year, Intel shares hit their lowest in more than a decade before receiving an $8.9 billion investment from Washington in exchange for a 10% stake, now valued at $13.2 billion. SoftBank also invested $2 billion in August.
The White House called the Nvidia-Intel partnership a “major milestone for American high-tech manufacturing,” though officials emphasized they were not directly involved in the deal. Analysts remain cautious, noting uncertainty about whether Nvidia will eventually manufacture its chips at Intel’s foundries.
For now, the agreement covers Intel building x86 CPUs for Nvidia’s AI infrastructure and developing PC system-on-chips integrating Nvidia’s RTX GPUs. The deal is still subject to regulatory approval.
Meanwhile, Nvidia continues to navigate trade negotiations between the U.S. and China over its ability to sell less-advanced chips in the Chinese market.
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