Intel shares surged 26% on Thursday, climbing above $31 for the first time since July 2024, after Nvidia revealed a $5 billion investment in the chipmaker.
Nvidia said it will purchase Intel stock at $23.28 per share. The investment is part of a larger collaboration between the two semiconductor leaders to develop multiple generations of custom data center and PC products. The news also lifted Nvidia shares, which gained more than 3%.
The partnership will integrate Nvidia and Intel architectures through Nvidia’s NVLink technology. The collaboration combines Nvidia’s AI and accelerated computing expertise with Intel’s CPU technologies and x86 ecosystem.
As part of the agreement, Intel will manufacture Nvidia-custom x86 CPUs for integration into Nvidia’s AI infrastructure platforms. For the PC market, Intel will design system-on-chips with Nvidia RTX GPU chiplets to power next-generation personal computers that require high-performance CPU and GPU integration.
Analysts at Baird called the deal a “clear win” for Intel’s CEO, who has sought a flagship client for its foundry business. They expect the partnership to drive market share gains and boost revenue. Analysts also noted benefits for Nvidia, Rambus, and Micron, while seeing potential headwinds for AMD.
Wedbush analysts added that the announcement strengthens U.S. leadership in the global AI race, turning Intel “from a laggard to a catalyst.” Wolfe Research said the deal could be slightly negative for AMD and ARM, as it makes Intel more competitive in both CPUs and AI platforms.
The partnership follows Intel’s August agreement with the Trump administration, which included an $8.9 billion U.S. government investment in the company through the CHIPS and Science Act and the Secure Enclave program.
The broader semiconductor market also reacted strongly. AMD shares dropped 2.9%, while ARM fell 4.2%. On the upside, Taiwan Semiconductor rose 1.1%, Lam Research gained 4.3%, KLA Corporation jumped 7.9%, and Synopsys advanced 9.7%.
