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Nvidia has announced a $5 billion investment in Intel, marking one of the most significant moves in the semiconductor industry. Following the news, Intel shares surged more than 30% in pre-market trading.
Nvidia Intel Investment Sparks Market Rally
The Nvidia Intel investment will be made at $23.28 per share, representing a 6.5% discount compared to Intel’s previous closing price. Despite this discount, the announcement triggered a massive rally, pushing Intel stock above $31 for the first time since mid-2024.
This collaboration will focus on merging Nvidia’s AI and accelerated computing leadership with Intel’s CPU technologies. As a result, the two companies aim to deliver cutting-edge products for both data centers and personal computers. Moreover, the deal signals a new chapter in the global chip race.
Data Center Chips With AI Acceleration
Under the agreement, Intel will design and manufacture custom x86 CPUs for Nvidia. These CPUs will be integrated into Nvidia’s AI infrastructure platforms, offering powerful solutions for hyperscale and enterprise workloads. Furthermore, the partnership will leverage Nvidia’s NVLink technology to seamlessly connect Intel and Nvidia architectures.
This breakthrough could redefine performance standards in cloud infrastructure and artificial intelligence. Consequently, enterprises will gain access to highly scalable and efficient solutions for next-generation applications.
PC Chips Powered by RTX GPU Chiplets
For personal computing, Intel will create x86 system-on-chips (SoCs) that integrate Nvidia RTX GPU chiplets. These new PC chips will combine high-performance CPUs with world-class GPU power in a single package.
The upcoming SoCs are designed for gaming, creative applications, and AI-driven software. As a result, users can expect smoother experiences in graphics-heavy workloads and AI-enhanced tasks.
Intel Gains Strong Financial Backing
The Nvidia Intel investment follows a series of recent financial boosts for Intel. In August, the U.S. government invested $8.9 billion into the company, including CHIPS Act grants and Secure Zone funding. Additionally, Japan’s SoftBank Group surprised markets last month with a $2 billion investment in Intel.
These capital injections, combined with asset sales, strengthen Intel’s ability to compete globally. Most importantly, the Nvidia partnership reinforces Intel’s role in the rapidly evolving AI and semiconductor landscape.
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