On September 18, Intel’s stock surged 22.77%, marking its largest single-day gain since 1987. The company’s market capitalization climbed to $133.9 billion, surpassing the $100 billion milestone.
The dramatic rise followed an announcement that NVIDIA will invest $5 billion in Intel and collaborate on developing chips for PC and data center applications. As part of the agreement, NVIDIA will purchase Intel common stock at $23.28 per share, acquiring approximately 4.91% of the company. Upon completion, NVIDIA will become Intel’s fourth-largest shareholder.
The partnership will leverage NVIDIA’s NVLink technology to enable seamless architectural integration, combining NVIDIA’s expertise in AI and accelerated computing with Intel’s leading CPU capabilities and the x86 ecosystem. In the data center segment, Intel will develop custom x86 CPUs for integration into the NVIDIA AI infrastructure platform. For personal computing, Intel will introduce x86 System-on-Chip (SoC) solutions incorporating NVIDIA RTX GPU chiplets.
ICgoodFind Summary: The strategic investment and collaboration between NVIDIA and Intel are set to reshape the competitive dynamics of the chip industry, creating new growth opportunities for both companies.
