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Intel shares surged nearly 30% in pre-market trading Thursday, crossing above $32 for the first time since July 2024, after Nvidia announced a landmark $5 billion investment in the chipmaker.
Details of the Investment
Nvidia confirmed it would purchase $5 billion worth of Intel stock at $23.28 per share, cementing a strategic partnership between the two U.S. semiconductor leaders. The collaboration is aimed at developing multiple generations of custom data center and PC products.
The deal builds on Nvidia’s strengths in AI and accelerated computing and Intel’s established x86 CPU technologies and ecosystem, leveraging NVLink technology to connect the two architectures.
Strategic Collaboration
- Data Center: Intel will manufacture Nvidia-custom x86 CPUs, which Nvidia will integrate into its AI platforms.
- Personal Computing: Intel will design x86 system-on-chips incorporating Nvidia RTX GPU chiplets, targeting high-performance PCs.
This integration is positioned to accelerate AI workloads, expand market reach, and give both companies a competitive edge in the fast-growing AI infrastructure space.
Analyst Reactions
Analysts welcomed the deal as a major turning point:
- Baird: Called it a “clear win” for Intel’s leadership, boosting foundry revenues and market share, while also expanding Nvidia’s total addressable market (TAM). They flagged positive spillovers for Rambus and Micron, but headwinds for AMD given the combined CPU–GPU force.
- Wedbush: Said the partnership “strengthens the U.S. lead in the AI arms race against China,” turning Intel “from laggard to catalyst.”
Government Backing
This announcement comes shortly after Intel secured $8.9 billion in U.S. government support under the CHIPS and Science Act and Secure Enclave program. The state investment underpins America’s efforts to bolster domestic semiconductor leadership against global competitors.
