Nvidia, one of the world's leading chipmakers, announced on Thursday that it will invest $5 billion in Intel and work with a struggling semiconductor company.
Nvidia said it would spend $5 billion to buy Intel common stock at $23.28 per share. Investments subject to regulatory approval are US Government We acquired a 10% stake in Intel.
Nvidia CEO Jensen Huang called it “a fusion of two world-class platforms.” It combines Intel's strength in creating traditional computer chips known as CPUs to power most of its laptops, focusing on special graphics chips that Nvidia is important for artificial intelligence.
“This partnership is a perception that computing has fundamentally changed,” Huang told reporters Thursday. “Accelerating times and AI computing have arrived.”
In morning trading, Intel stocks rose 25%. This has increased the largest daily rate in decades. Nvidia shares added 2%.
Visitors will give commands to Nvidia's Booth robots at the 3rd China International Supply Chain Expo, held at the China International Exhibition Centre in Beijing on July 18, 2025.
For data centers, Intel creates custom chips that NVIDIA uses on its AI infrastructure platform. On the other hand, for Personal Computer products, Intel builds chips that integrate NVIDIA technology.
This agreement provides Intel with a lifeline. This was a pioneer in Silicon Valley, where processors enjoyed decades of growth as they were powered by the personal computer boom, but it slumped after missing out on a shift into the era of mobile computing, which was unleashed by the iPhone's 2007 debut.
Intel has lagged even further in recent years amid the AI boom that has promoted Nvidia to become the world's most valuable company. Intel lost nearly $19 billion last year and another $3.7 billion in the first six months of last year, and plans to cut its workforce by quarter by the end of 2025.
Archivo – El Logotippo de entelle in the generals of the Las oficinas, en santa clara, California, El 12 de Enero De 2011 (Ap Foto/Paul Sakuma, Archivo)
The US government intervened last month Securing 10% stake – 433.3 million shares not promoted at a price of $20.47 each are one of Intel's biggest shareholders. Federal authorities said they invested in Intel to enhance US technology and domestic manufacturing.
Huang said Nvidia has been in talks with Intel for about a year. Intel CEO Lip-Bu Tan, who attended a press conference with Huang on Thursday, said he has been talking to Nvidia since being named Intel's new leader in March.
“This is a very big and important milestone,” Tan said. “I call it a game-changing opportunity to work with.”
The deal is “bullying for US technology,” said Daniel Ives of Wedbush Securities Analyst in a client's note.
Ives said Intel is bringing “the front and center into AI games,” combined with US government stocks, adding “a golden few weeks for Intel after years of pain and frustration from investors.”
Meanwhile, Nvidia is rising sharply as its special chips support the AI boom. Chips known as graphics processing units, or GPUs, are extremely effective in developing powerful AI systems.
The contract between the two chipmakers is because China moves to not rely on US semiconductor technology. This week, Chinese officials It is reportedly Several large domestic technology companies have banned Nvidia chips from purchasing, and Huawei has announced that it is expanding its AI chips and manufacturing development.
Nvidia and Intel will work together to develop new chips, but the manufacturing industry has not yet been hit between the two. Nvidia's potential access to Intel's chip foundry poses risks to Taiwanese semiconductor manufacturers that currently manufacture Tech Giant's flagship processors.
Fans were in the UK on a visit coinciding with President Donald Trump's trip to the country, and he is attending events with the president along with other Silicon Valley Bigwigs.
At the signing ceremony for the Trans-Atlantic Technology Partnership with British Prime Minister Kiel Starmer on Thursday, Trump believed that AI was “taking over the world.”
“I'm looking at you guys. You're taking over the world, Jensen,” Trump said.
