Nvidia invests $5 billion into Intel, starting chip partnership

Nvidia announced a $5 billion investment in Intel, making it one of the chipmaker’s largest shareholders with roughly a 4% stake. causing Intel’s stock to surge.

Nvidia Chief Executive Officer Jensen Huang, Nvidia News.

Intel recently appointed Lip-Bu Tan as its CEO, who faced criticism from U.S. officials including President Trump regarding his connections with China. The government-backed stake and Nvidia’s investment mark a pivotal moment for Intel, providing new resources and opportunities to collaborate with a major player in the chip industry. The deal includes joint development of PC and data center chips, but it does not extend to Intel’s contract manufacturing, known as the foundry business.

Under the terms of the deal, Nvidia will pay $23.28 per share for Intel stock, slightly below Intel’s previous close but higher than the U.S. government’s share price (note that President Trump invested billions of dollars already into Intel). Both companies plan to produce "multiple generations" of future products, combining Intel CPUs with Nvidia GPUs to improve speed and performance in AI applications. Analysts note the collaboration could strengthen Intel’s competitiveness against rivals like AMD and Broadcom, while also posing a long-term risk to Taiwan’s TSMC, which currently manufactures Nvidia’s mainline Blackwell chips.

Intel therefore gains additional capital alongside prior investments from SoftBank and the U.S. government, supporting CEO Tan’s goal to acquire funding that would then be allocated toward streamlining operations and expanding production that is necessitated by consumer demand.

“This move aligns with U.S. policy and could help ease restrictions on selling advanced chips to China,” argued Matt Britzman, senior equity analyst at Hargreaves Lansdown. Additionally, David Wagner, who is portfolio manager at Aptus Capital Advisors, added to Britzman's statements, "AMD has been seizing market share in desktops and laptops for quite some time and this will help Nvidia out against its closest domestic peers, but I think TSMC may have the bigger risk to its operation over the long term."