Intel’s stock skyrocketed more than 25% on Thursday after Nvidia announced a massive $5 billion investment in the chipmaker, marking the start of a landmark partnership between two of the world’s most influential semiconductor companies.
What the $5 Billion Deal Means
Nvidia will purchase Intel’s common stock at $23.28 per share and collaborate to co-develop multiple generations of custom data center and PC products. The goal: accelerate workloads and applications across hyperscale, enterprise, and consumer markets.
The Collaboration Plan
- Data Centers: Intel will build NVIDIA-custom x86 CPUs that will be integrated into Nvidia’s AI infrastructure platforms.
- Personal Computing: Intel will manufacture new x86 system-on-chips (SoCs) combining Intel CPUs with Nvidia RTX GPU chiplets. These x86 RTX SoCs are expected to power next-gen PCs requiring tight CPU-GPU integration.
The collaboration will also leverage Nvidia NVLink to connect Nvidia’s accelerated computing stack with Intel’s CPU ecosystem, delivering “cutting-edge solutions” for global customers.
Leadership Voices
Nvidia CEO Jensen Huang called the partnership a “historic collaboration” and emphasized that AI is “reinventing every layer of the computing stack”. He added that the deal aligns Nvidia’s CUDA-powered AI leadership with Intel’s CPUs and the x86 ecosystem.
Intel CEO Lip-Bu Tan praised Nvidia’s confidence, saying the partnership will combine Intel’s data center and client computing platforms with Nvidia’s AI dominance to “enable new breakthroughs for the industry.”
Market Reaction
The deal sent Intel shares soaring over 25% in regular trading and more than 30% in pre-market, as analysts said Nvidia’s backing signals renewed confidence in Intel’s long-term value.
Peter Andersen of Andersen Capital Management noted, “Anything that NVIDIA decides to endorse just by association will make Intel’s stock appear attractive because it implies Nvidia sees value in Intel.”
