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2025-09-18T13:47:03Z
Intel stock soared 28% at Thursday’s market open on news of a partnership with Nvidia.
Nvidia committed to invest $5 billion in Intel stock as part of the collaboration.
Nvidia CEO Jensen Huang hailed the deal as a “fusion of two world-class platforms.”
Intel’s shares surged as much as 28% on Thursday after Nvidia said it would buy $5 billion of its common stock as part of a partnership between the chipmakers.
The pair said they would jointly develop custom products, with Nvidia integrating custom Intel CPUs into its AI infrastructure for data centers, and Intel integrating Nvidia’s graphics processors into the chip systems it sells to PC customers.
“This historic collaboration tightly couples Nvidia’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms,” Nvidia CEO Jensen Huang said in the press release.
Shares in Nvidia, the world’s most valuable company, rose as much as 3% on Thursday.
It said it would pay $23.28 per Intel share, below Intel’s closing price of $24.90 on Wednesday, but above the $20.47 a share that the US government agreed to pay in August.
That agreement saw the Trump administration commit to invest $8.9 billion, funded by grants awarded to Intel under previous government programs, for a 9.9% stake.
“This is a game changer deal for Intel as it now brings them front and center into the AI game,” Dan Ives, Wedbush’s global head of tech research, said in a note shortly after Thursday’s announcement.
“Along with the recent US Government investment for 10% this has been a golden few weeks for Intel after years of pain and frustration for investors,” Ives added, referring to Intel losing ground to rival chipmakers, including Nvidia, in recent years.
Intel’s market value was $116 billion at Wednesday’s close, meaning that, if Nvidia’s $5 billion investment is approved by regulators, it’s likely to become one of Intel’s largest shareholders.
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