By Michelle Ndaga
Nvidia has announced a $5 billion investment in Intel, acquiring a 4–5% stake in the struggling chipmaker as part of a broader strategic partnership. The move positions Nvidia alongside the U.S. government, which earlier this year took a roughly 10% stake in Intel to stabilize the company.
The purchase, made at $23.28 per share, marks a significant step for the world’s most valuable semiconductor firm as it deepens collaboration with Intel.
Under the agreement, the two companies will co-design chips for data centers and PCs, with Intel supplying custom x86 processors for Nvidia’s AI infrastructure and developing PC chips that integrate Nvidia’s graphics technology.
The partnership does not include Intel’s foundry business, which remains independent. However, the tie-up is seen as crucial for Intel, which has struggled with financial losses, competitive pressures, and delays in advanced manufacturing, even as Nvidia dominates the booming AI market.
News of the deal sent Intel shares surging nearly 30% in pre-market trading, while Nvidia’s stock also gained modestly. Analysts say the collaboration could help Intel regain relevance in next-generation computing while providing Nvidia with greater synergy in CPUs and GPUs.
The agreement still requires regulatory approval but underscores a broader U.S. push to secure domestic chipmaking and counterbalance Asian supply chain dominance.
For Intel, the partnership provides both financial relief and technological lifelines. For Nvidia, it secures a powerful ally in the CPU space and broadens its reach beyond graphics and AI accelerators.
