Intel surges as Nvidia takes $5B stake

Investing.com -- Intel shares jumped over 24% in pre-market on Thursday, trading above $31, a level not seen since July 2024, after Nvidia announced a $5 billion investment in the chipmaker.

Nvidia on Thursday said it plans to purchase $5 billion of Intel shares at $23.28 per share. The investment comes as part of a broader collaboration between the two semiconductor giants to develop multiple generations of custom data center and PC products.

The partnership will focus on connecting Nvidia and Intel architectures using Nvidia NVLink technology, combining Nvidia’s AI and accelerated computing capabilities with Intel’s CPU technologies and x86 ecosystem.

Under the agreement, Intel will build Nvidia-custom x86 CPUs that Nvidia will integrate into its AI infrastructure platforms. For personal computing, Intel will develop x86 system-on-chips that incorporate Nvidia RTX GPU chiplets, which will power various PCs requiring integration of high-performance CPUs and GPUs.

This announcement follows August agreement between Intel and the Trump Administration, which included an $8.9 billion government investment in Intel. That investment comprised $5.7 billion in previously awarded but unpaid grants under the U.S. CHIPS and Science Act, plus $3.2 billion from the Secure Enclave program.

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