Nvidia's $5 Billion Intel Investment Reshapes AI Chip Landscape

Nvidia buys $5 billion stake in Intel, planning AI chip collaboration | TechCrunch

Nvidia has agreed to buy a $5 billion stake in Intel as part of a broader deal to together develop "multiple generations" of data center and PC products. Nvidia will acquire the Intel stock for $23.28 per share, a slight discount on the companies previous trading price. According to Reuters, the deal would make Nvidia one of Intel's largest shareholders, owning about 4% of the company. Intel shares were up as much as 30% in early trading on Thursday morning. The companies will integrate their two architectures using Nvidia's NVLink interface, which enables data and control code transfers between CPUs and GPUs. NVLink enables faster transfers between chips compared with other standards like PCI Express, which is crucial for AI applications, which require many GPUs to run together and process immense workloads. For data centers, Intel will manufacture a new line of x86 CPUs specifically customized for Nvidia's AI infrastructure platforms, to be offered to enterprise and hyperscale customers. For the consumer PC segment, Intel will build x86 system-on-chips that will incorporate chiplets of Nvidia's RTX GPUs, which will no doubt give Intel an edge over rival AMD's CPUs. The companies are calling these chips "x86 RTX SoCs," at the moment, and claim these chips will power a "wide range of PCs." The deal comes after a rough few years for Intel, which has struggled to capitalize on the AI chip race unlike its new partner. The company brought on a new CEO, laid off thousands of staff as it sought to shore up margins, and spiked manufacturing projects to prioritize capex discipline. The deal comes on the heels of another record quarter for Nvidia, which has grown into both the world's most lucrative semiconductor companies and, by market cap one of the largest companies the world, regardless of industry. Over the same period, Intel has struggled to keep pace with the fluctuations of market demand, particularly the intense semiconductor demands of AI. As a result, the collaboration could allow them to back market share from rivals like AMD. "Intel's leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA's AI and accelerated computing leadership to enable new breakthroughs for the industry," said Intel CEO Lip-Bu Tan in a statement.

Jensen Huang Wants You to Know He's Getting a Lot Out of the 'Fantastic' Nvidia-Intel Deal

One of the world's most valuable companies is throwing Intel a lifeline. Nvidia, which has a market cap of $4.3 trillion, said today that it will invest $5 billion in Intel, the struggling US chipmaker that was recently at the center of an unorthodox investment deal with the US government. Intel shares jumped more than 30 percent following the news. The two American chip makers are also entering into a product collaboration. Intel said in a statement early Thursday morning that "Intel's leading CPUs and x86 ecosystem will be seamlessly connected with NVIDIA's AI and accelerated computing capabilities using NVLink," referring to Nvidia technology that connects CPUs with GPUs. Intel CEO Lip-Bu Tan posted a photo on X with Nvidia cofounder and CEO Jensen Huang. Tan wrote that he was excited to team up with his "good friend Jensen" to jointly develop custom data center and PC chips. In a press briefing, Huang emphasized that the deal will allow Nvidia to scale its rack architecture systems that combine 72 GPUs with custom CPUs. Huang also said that working with Intel means Nvidia can take a bigger slice of the personal device market. "There are 150 million laptops sold per year," he said. "We're now creating a system-on-a-chip that fuses two processors into one giant SoC, and that will become a new class of integrated laptops that the world has never seen before." Huang estimated that the deal represents between "$25 billion and $50 billion of annual opportunity." Nvidia's investment comes on the heels of the US government taking a roughly 10 percent stake in Intel by converting billions of dollars in CHIPS Act grants into an equity investment. The US government has also been reevaluating export controls, which have limited Nvidia's (and AMD's) ability to sell advanced GPUs to China. The administration recently said that it would grant export licenses to Nvidia and AMD, enabling them to sell certain chips to China, if the companies gave the US government a 15 percent cut of the proceeds. Huang insisted that the Trump administration was not involved in Nvidia's talks with Intel, which, according to Huang, have been going on for nearly a year. "The Trump administration had no involvement in this partnership at all," Huang said. "They would have been very supportive, of course. Today, I had the opportunity to tell Secretary [of Commerce, Howard] Lutnick and he was very excited and supportive of seeing American technology companies working together." Still, says Pat Moorhead, founder and principal analyst at Moor Insights & Strategy, "I do believe Nvidia scores points with the administration by making this investment." "The administration's move to take a stake in the company definitely gives some momentum for Intel to attract more external investments, like the earlier investment from SoftBank, and today, NVIDIA," says Ray Wang, research director for Semiconductors and emerging tech at the Futurum Group. Wang also noted that the initial announcement of a partnership between Intel and Nvidia didn't mention Intel's Foundry Services, which offers the most advanced chip design and manufacturing opportunities to Intel customers. Nvidia largely relies on Taiwan Semiconductor Manufacturing Company for those services. (TSMC also manufactures some of Intel's chips.)

What Nvidia's stunning $5 billion Intel bet means for enterprise AI and next-gen laptops

Nvidia declined to say if it ever plans to use Intel's factories. Struggling chip maker Intel received a significant lifeline on Thursday from longtime rival Nvidia. The AI chip giant announced it would make a $5 billion investment in Intel and partner to develop chips based on Intel's x86 microprocessor standard. The move is seen as a way for Nvidia to broaden its lead with artificial intelligence by reaching more enterprises that rely on x86 technology to run their IT systems. Also: Deploying agentic AI? You'll probably do business with these 3 companies Intel stock had been up 24% this year through Wednesday's close, but the announcement drove its shares up by another 23% in Thursday afternoon trading. During a conference call Thursday afternoon to discuss the deal, Nvidia CEO Jensen Huang said Nvidia plans to be a "major customer" for Intel's Xeon line of server CPUs. "I think it's safe to say that the partnership that we're entering into is going to address some $25-50 billion of annual opportunity," said Huang. To date, Nvidia has built its own microprocessors, the Grace CPU, on technology licensed from ARM Holdings, which develops intellectual property used by just about every chip maker in the world. Also: Intel's new CEO vows to run chipmaker 'as a startup, on day one' Most of the world's computing can be divided neatly into devices that run some kind of ARM CPU "core," such as Nvidia's Grace chip or Apple's "A-series" silicon for the iPhone, and devices built around Intel's x86, including PCs and servers from equipment makers who buy Intel and AMD chips. Some chip-industry observers suggest that Nvidia has soured on the relationship with ARM because ARM, majority-owned by Japanese conglomerate SoftBank Group, has indicated it intends to build its own AI chips, which could compete with Nvidia's GPU franchise. More immediately, Nvidia's enormous success selling AI chips into the cloud data centers of Amazon, Oracle, and other giants has yet to translate into a large volume of sales into corporate data centers, where ARM-based chips have never made much headway. "For the x86 ecosystem, it's really unavailable except with server CPUs over PCI Express," said Huang regarding AI computers such as the NVLink-72, Nvidia's biggest design for a data center computer. "The first opportunity is that we can now, with Intel x86 CPU, integrate it directly into NVLink ecosystem and create these rack-scale AI supercomputers." Also: Nvidia plans to make DeepSeek's AI 30 times faster - CEO Huang explains how In addition to data center machines, Huang said an integrated CPU-GPU part from Nvidia and Intel will enable laptop computers never before seen. "The second thing is there's 150 million laptops sold per year, and Nvidia's market is largely targeted squarely at gaming and workstation markets where discrete GPUs are used," he said. "We're very successful there, we continue to grow there, and we're going to continue to grow there. There's an entire segment of the market where the CPU and the GPU are integrated, and it's integrated for form factor reasons, maybe it's for cost reasons, maybe it's for battery life reasons, all kinds of different reasons. That segment has been largely unaddressed by Nvidia today." Intel and Nvidia, continued Huang, are creating "an SoC that fuses two processors. It fuses the CPU and Nvidia's GPU, RTX GPU, using NVLink. It fuses these two dies into one essentially virtual giant SoC, and that would become essentially a new class of integrated graphics laptops that the world's never seen before." Huang deflected questions about whether Nvidia would become a customer of Intel's chip foundry -- one of the world's largest factories, but mostly dedicated to making Intel's own chips. "We've always evaluated Intel's foundry technology, and we're going to continue to do that," said Huang. Intel's sales have been in steep decline over several years as its own GPU chips failed to compete effectively with Nvidia, thereby missing the AI wave. Intel has also ceded market share for years to AMD, which has become a more prominent vendor of x86 CPUs to accompany Nvidia GPUs in AI computers. Also: I built a business plan with ChatGPT and it turned into a cautionary tale Intel CEO Lip-Bu Tan came on board in March, promising a major restructuring to restore Intel to its original profile as a fast-moving startup company. Tan replaced Pat Gelsinger, who media reports say was ousted last year after the Intel board of directors turned sour on his efforts to turn the company around. In Thursday's briefing with Huang, Tan heaped praise on the Nvidia chief, whom he has known for over 30 years. "I have to salute him," said Tan of Huang. "He's done a fabulous job building that AI platform, driving the whole new market opportunity. I'm so excited to be able to work together with Jensen to build a new era. "This is a historic collaboration between the two companies," Tan added, "and I think this is a very big, important milestone. We are proud that Nvidia is an investor in Intel, and thank you for supporting us and trusting us." Last month, the US government took a 10% stake in Intel, an unprecedented move for government involvement in a for-profit corporation. Also: For AI agents, bite-size 'small language models' could make more sense Nvidia's Huang said the administration of US president Donald Trump had "no involvement" in its investment in Intel. He added that US commerce secretary Howard Lutnick was "very excited" about the investment. At Wednesday's closing price, Intel was valued at $116 billion, making Nvidia's $5 billion investment worth 4% of the company.

Why packaging is a huge part of Nvidia's $5B Intel deal -- Foveros could speed up market delivery

Foveros and EMIB are doing more than stacking dies; they're accelerating Nvidia's roadmap. Intel isn't the most obvious partner for Nvidia. The two companies have competed across consumer, data center, and AI markets for decades with no shortage of friction. But on a joint call on September 18, following news of an unexpected partnership, Nvidia CEO Jensen Huang and Intel chairman Lip-Bu Tan turned that dynamic on its head, announcing that Nvidia will invest $5 billion in Intel and begin using its packaging technology for an upcoming SoC line. Why? Not for foundry capacity in the traditional sense, and not just to keep a geopolitical hedge against Taiwan. According to Huang, the key factor was packaging. "Intel has the Foveros multi-technology packaging capability," he said, "and it's really enabling here... connecting NVIDIA's GPU die chiplet with Intel's CPUs in a multi-technology packaging capability and multiprocess packaging technology." Tan agreed. "Foveros and EMIB is [sic] a really good technology," he added, calling the packaging roadmap "a great opportunity for both of us." In recent years, packaging has become Intel's fastest and most reliable on-ramp to foundry revenue. For Nvidia, that makes it the shortest path to market for its next generation of AI SoCs and the likely primary driver behind the partnership. The packaging that Huang praised by name -- Foveros -- is Intel's 3D chip stacking solution. Unlike traditional multi-die packages, which spread chiplets side-by-side on a shared substrate, Foveros stacks one directly on top of another using through-silicon vias (TSVs). This shortens interconnect length and offers significantly higher bandwidth than planar layouts. It also allows each tile in the stack to be built on a different process node, enabling designers to assign logic to the most appropriate tech for performance or cost. If Foveros is the vertical axis of Intel's packaging portfolio, EMIB (Embedded Multi-die Interconnect Bridge) is the horizontal one. EMIB embeds thin silicon bridges inside the package substrate to link dies together at a high density and low power without the need for a massive silicon interposer. More recently, Intel has combined the two in what it calls Co-EMIB: Foveros stacks linked together across a package using EMIB bridges. What this all adds up to is a system for building complex chiplet-based products that behave more like monolithic SoCs, and Intel has spent the better part of a decade turning it into a viable business. Intel's Ponte Vecchio GPU used Foveros and EMIB. So did Meteor Lake. And crucially, Intel has been manufacturing these packages at volume. The company's $3.5 billion Foveros-capable facility in New Mexico went live last year, giving Intel the domestic capacity to court U.S. AI and cloud players looking to hedge their reliance on overseas providers. Intel has increasingly positioned advanced packaging as a central pillar of its foundry strategy due to its near-term business upside. During its Direct Connect event back in April, the company highlighted packaging alongside manufacturing capacity and ecosystem development as core to its customer-first push, emphasizing how Foveros and EMIB allow Intel Foundry to serve heterogeneous compute needs without requiring customers to wait on new process nodes. We described Intel's packaging breakthroughs earlier this year as "the fastest on-ramp to meaningful revenue generation," particularly when compared to the long ramp cycles associated with new front-end process technologies. This framing was echoed by Huang during the joint call. "In the case of our consumer PC, we will sell... Nvidia's GPU chiplet... to Intel," he said, adding, "And that is then packaged into an SoC." That chiplet will be bonded using Foveros or Co-EMIB and then shipped as part of a complete product. In other words, Nvidia gets to leverage Intel's infrastructure and packaging stack without waiting for its core foundry nodes to catch up. That might be the entire point. Nvidia's highest-volume AI parts now use chiplet designs with extreme interconnect and bandwidth demands. Intel's packaging lets Nvidia skip the wait by integrating existing GPU dies with new CPU tiles -- a point Huang hammered home repeatedly. "... It's really a fabulous way of mixing and matching technology... that's... why we're going to be able to innovate so quickly and build these incredibly complex systems," he said. Tan echoed the sentiment. "I think it's a great opportunity for both of us," he said. "... We will definitely continue to refine it [Foveros and EMIS] and make sure [that it's] reliable and the yield [improves]." Unlike bleeding-edge nodes, which can easily be bottlenecked, Intel's advanced packaging offers Nvidia a fast path to yield optimization and market delivery. With U.S. demand for AI systems surging, Nvidia needs a second-source capacity that isn't located entirely in Taiwan. Intel provides that, with domestic packaging and a fast-maturing foundry model built around chiplet assembly. But geography aside, the partnership is ultimately about what Intel's packaging lets Nvidia do that no one else can deliver on the same timeline: Build hybrid, multi-chiplet SoCs with custom CPUs, GPU dies from another fab, and ultra-high-bandwidth interconnect between them. That's not a TSMC job, nor is it a Samsung one. It's exactly the kind of complex system Intel's packaging team has been preparing for years, and now it has Nvidia as its highest-profile customer.

Intel and Nvidia: The Chip Partnership That Could Rewrite the PC Playbook

(Credit: Cole Kan/PCMag/Nvidia/Intel/Narumon Bowonkitwanchai via Getty) In a surprise announcement, Intel and Nvidia announced a $5 billion investment deal that signals a new strategic alliance between two of the biggest chip makers on the planet. Longtime frenemies in the microprocessor world, both companies have had their respective CPU and GPU hardware in the same laptop and desktop products for decades. Now, Nvidia has bought a $5 billion stake in Intel, taking ownership of 4% to 5% of the company through common stock. But this isn't merely an investment deal. The duo just announced that it will co-develop several new products that combine the companies' strengths. Intel will design and manufacture custom x86-based CPUs for data centers and AI infrastructure that can use Nvidia's NVLink processor connection technology. At the same time, Nvidia will make GeForce RTX GPU chiplets to fit onto Intel system-on-chip (SoC) processors for consumer PCs. Neither company will say when new products from this partnership will reach the market. But in a press conference on September 18, Nvidia CEO Jensen Huang revealed that Intel and Nvidia teams have already collaborated for a year on planning a shared architecture for these new SoCs. So silicon resulting from this partnership could be here sooner than expected. Our news coverage of the deal, linked above, gets into more of the agreement details and the business impact of the partnership. However, my thoughts immediately went to consumer PCs and how this new team-up could shake up the world of laptops and desktops. If there's a new line of Intel-Nvidia hybrid chips in the offing, what does that mean? How might specific Nvidia technologies play into new Intel systems? And where will this kind of CPU fit into the familiar categories shoppers already know? Intel Has the Peanut Butter, Nvidia Brings the Chocolate Nvidia has several technologies that Intel can benefit from in this new partnership. I'll break them down one by one. NVLink: Faster Internal Chip Connections One mentioned explicitly in the announcement is NVLink, Nvidia's high-bandwidth, low-latency, proprietary interconnect that supports massive amounts of bandwidth for moving data between processor elements. (NVLink, on a bigger scale, is also a key enabling technology in Nvidia's data center strategy.) With current GPU implementations reaching up to 1.8 terabytes (TB) per second (albeit, across 18 100GB-per-second connections), NVLink dwarfs the bandwidth of PCI Express 4.0, which has a maximum aggregate bandwidth of 64GB per second, and PCI Express 5.0, which doubles that. Not knowing how many connections a hybrid chip would actually use, the difference could be pretty significant. Here, NVLink would be implemented as a connection between the Nvidia RTX graphics chiplet on the SoC and the chiplet with the Intel CPU cores. That sort of stable point-to-point connectivity promises to reduce bottlenecks for data-intensive uses, like graphics workloads, and it could mean faster AI inference performance and multitasking when incorporated into an SoC. CUDA and Tensor Cores: Supplanting the NPU? Nvidia GPUs rely on CUDA processing cores, specialized parallel processors that efficiently handle the thousands of simultaneous operations needed for modern graphics rendering. But they can also handle floating-point and integer calculations, making them extremely useful for AI workloads. Tensor cores comprise the rest of Nvidia's silicon offering. These are specialized accelerators for the matrix math needed for AI. Where CUDA cores handle the bulk of computations, Tensor cores speed up deep learning and AI tasks, boosting speed for specific functions that need neural network training and inference. These specialized cores also serve as the AI engine behind Nvidia's DLSS tech, which I'll get to shortly. An Nvidia GPU chiplet that included CUDA and Tensor core technology would dramatically boost both graphics and AI PC capabilities in a consumer laptop, easily exceeding traditional integrated graphics, and possibly supersede the robust neural processing unit (NPU) hardware altogether that we are seeing in late-model AMD and Intel laptop processors like the Ryzen AI 300 and Core Ultra 200V series. DLSS: Faster Gaming From Lesser GPUs DLSS, or deep learning super sampling, is Nvidia's AI-powered image-upscaling tech, and the most recent DLSS 4 adds upgraded frame generation that massively boosts GPU performance. The technology uses AI pattern recognition and prediction to create new, additional frames beyond those rendered by the GPU's rendering cores for faster frame rates at higher resolutions. (For a deep dive into these technologies, see our article GeForce RTX 50 Series Demystified.) While a chiplet-compatible version of this technology can't match what a dedicated GPU can produce, the result could still be profound for mainstream systems. Not only would it unlock gaming for a segment of the population that doesn't want to invest in a gaming laptop or pay extra for a dedicated GPU, it could also boost the visual performance of pretty much everything else, particularly creative work. Tegra Architecture: Carrying Over Learnings From Arm Tegra is Nvidia's own existing SoC processor, an Arm-based chip that combines CPU, GPU, memory controller, and neural network accelerator into a single integrated chip. Tegra chips more often appear in mobile devices (phones and tablets), console handhelds like the Nintendo Switch, and non-consumer applications like automotive and robotics. Based on Arm, the actual Tegra technology won't show up in Intel chips in any capacity. However, the design principles and lessons learned from Tegra will undoubtedly play a role in whatever designs Intel and Nvidia make together. Nvidia's experience with modularity, power management, and AI acceleration will definitely be part of what it brings to the table. Putting It All Together: A New 'Middle Kind' of Processor We traditionally talk about CPU and GPU technology in one of two ways. You have integrated graphics processors (IGPs), which use GPU cores built directly into the CPU, sharing the same chip. These GPUs work for basic visual tasks, like web browsing or video playback, using the same memory (RAM) allotted to the CPU. On the other hand, discrete GPUs use dedicated graphics processing hardware, a separate chip with its own processing cores and specialized video RAM, independent of the CPU and system RAM. These specialized chips are substantially faster for gaming, video editing, and other graphically intensive uses. In recent years, as GPU hardware has been tapped to power AI applications, they've provided the necessary muscle for running local AI models quickly. However, a new Intel-meets-Nvidia chip wouldn't really fall under either of these types, and it's not the first of its kind. Apple's M-series chips do something similar, pairing the CPU with graphical compute units in the same package, using shared memory pools and higher-bandwidth interconnects to deliver GPU-grade performance without a discrete graphics chip. AMD has recently blended CPU and GPU integration in similar fashion, with the AMD Ryzen AI Max+ ("Strix Halo") chips that combine a capable CPU with Radeon graphics and up to 128GB of unified memory. We've seen this capable hybrid approach in all sorts of applications, from a gaming tablet to a small desktop, and even a workstation laptop, all without a traditional discrete GPU. With this Intel and Nvidia collaboration, we could see these early examples become a mainstream option quickly. What will we call this new class of SoC's beefed-up graphics? "Hybrid graphics"? "Chiplet graphics"? "SoC graphics"? (Seriously, I don't actually know yet. If you have any great ideas for terminology, drop them in the comments below. We might just adopt your idea!) Intel-Nvidia Silicon Could Uplift These Kinds of PCs Here's where the train leaves Speculation Station and arrives in Imagination Land. While I can make informed logical leaps about how Intel might leverage Nvidia technology and how a new hybrid chip aligns with other emerging trends in PC technology, we haven't seen any word about where these new chips will fit into the laptop and desktop landscape. Dedicated GPU hardware has traditionally been the domain of gaming machines and professional workstations. But what happens when a new option is more potent than an IGP, but not as beefy as a discrete GPU? I have ideas. 1. Boosted AI Laptops, Beefed-Up Mini Desktops These new chips look like they could serve as a massive step up from the NPUs used in current AI PCs. While I have no hard numbers for future hybrid SoCs, we know that Intel's NPU hardware can generate 40 to 50 trillion operations per second (TOPS). Meanwhile, Nvidia's entry-level mobile RTX 50-series GPUs produce 440 TOPS. While that will be a significant boon for AI PC laptops, I also see a place for mini PCs and small form factor (SFF) desktops that can deliver substantially more powerful AI capabilities than Intel's NPU-equipped chips. While tiny, a mini PC provides enough room for more cooling hardware than what even a top laptop can fit. That positions compact desktop designs to take advantage of this new hardware in ways that laptops might not be able to match without mimicking the thicker, heavier designs of gaming laptops, which would be better served by a "true" discrete GPU, anyway. 2. More Affordable Content-Creation Laptops The emerging category of laptops that leverage low-end GPU hardware for GPU-accelerated content creation, rather than gaming, could use a lift. These new hybrid SoC processors could make those media-focused machines much more affordable. For tasks like video streaming, video and image editing, graphic design, and other functions like 3D rendering, Intel-Nvidia combo chips would open up a lot of capability for new designs that combine the slimness of ultraportables with the capability of entry-grade workstations and gaming machines. 3. Slimmer, Longer-Lasting Midrange Gaming Machines Finally, gaming is the most obvious application of Nvidia chiplet technology on Intel CPUs. These new chips will provide efficiency and power for gaming performance in a thinner, lighter laptop, with longer battery life for day-to-day use. Thin-and-light gaming laptops tend to be even more costly than some powerful gaming rigs, since the design constraints are more severe. A slimmer chassis challenges your cooling solution; the current CPU/GPU model uses slower PCIe interconnects, and these systems require separate memory for graphics. The additional hardware means that the thinner gaming laptops still have much higher power draw, making on-battery use less impressive and battery life dramatically shorter than the 20-plus hours that some midrange consumer systems can now deliver. But putting more capable graphics into a midrange consumer laptop? That could mean gaming capability in something closer to an ultraportable, as opposed to the chunky designs that dominate our current budget gaming laptop picks, while still presenting a more affordable option than current GPU-equipped laptops. I'm just as excited as you to discover how these new chips will look and perform once they come to market. What kind of premium Intel and Nvidia will demand for this level of computational sophistication is anyone's guess right now, but until we see hard performance numbers, I wouldn't pay more than what a MacBook costs for the privilege.

Intel-Nvidia $5B tie-up spans NVLink racks and PC graphics

Nvidia is set to become one of Intel's largest shareholders after the GPU giant announced on Thursday it would invest $5 billion in the struggling chipmaker under a co-development agreement targeting PCs and datacenter infrastructure. For Nvidia, the arrangement presents an opportunity to extend its GPU empire to the integrated graphics arena, a space historically dominated by Intel and AMD. Under the partnership, Intel will design PC processors with Nvidia's GPU chiplets inside. At the same time, Nvidia is clearing the way for Intel's Xeon platform to play a bigger role in its AI infrastructure and datacenter product lines. While Xeons are found in products like Nvidia's Blackwell-based B200 and B300, the company's biggest and most powerful rack-scale systems, like the GB300 NVL72 all use its Arm-based Grace CPUs. By integrating Nvidia's NVLink interconnect tech into its CPU designs, Nvidia will be able to offer NVL72 style systems based on both its in-house CPUs and Intel's Xeons, while also addressing a larger share of the PC graphics arena. If you're not familiar, NVLink is a high-speed interconnect that's been used by Nvidia for years to efficiently distribute workloads across multiple GPUs, and more recently, its Arm-based Grace and Vera CPUs. These interconnects are incredibly fast, achieving 1.8TB/s of bandwidth (900GB/s in each direction) per GPU. That's about 14x the bandwidth of a PCIe 5.0 x16 slot. By integrating NVLink directly into its Grace CPUs, Nvidia was able to scale beyond eight GPUs per node to a rack-scale architecture with 72 called the GB200 NVL72. Unfortunately, for Intel, the lack of NVLink connectivity meant its Xeon processors were limited to Nvidia's smaller and less desirable air-cooled systems like the DGX B200 and B300. The introduction of NVLink Fusion this spring saw Nvidia open the tech to third-party CPU or XPU vendors. The only caveat was that chip vendors could only use the tech for communication with Nvidia's own GPUs or CPUs. Qualcomm and Fujitsu were named as Nvidia's initial CPU partners. But with Intel entering the fray, Nvidia's customers will soon have the option of purchasing NVL72-style rack systems using Intel's x86-based Xeon processors. "We can now, with Intel x86 CPU, integrate it directly into the NVLink ecosystem and create these rack scale AI supercomputers," Nvidia CEO Jensen Huang said during a press conference on Thursday. And because Intel's latest generation of Xeon processors utilizes modular I/O dies, integrating NVLink should be relatively straightforward compared to just a few years ago. For Intel, the partnership is effectively a shortcut to joining the rack scale computing fight, after several failed attempts to bring a competitive AI accelerator or datacenter GPU to the market. Last we heard, Intel was working on a rack scale GPU architecture of its own, but it remains to be seen whether it'll ever make it to market. In addition to a roughly 4 percent share of Chipzilla, Nvidia's partnership with Intel gives it tighter cooperation on co-designing hardware, and greater access to Intel's customer base. "The return on that investment is going to be fantastic, both, of course, in our own business, but also in our equity share of Intel," Huang said, estimating the addressable market for datacenter CPUs at about $25 billion, and the laptop market at 150 million units a year. The latter appears to be what Nvidia is really paying for. By integrating its GPUs directly into Intel's processors at the chiplet level, Nvidia gains access to a market that was previously inaccessible to it. Nvidia is certainly no stranger to the PC arena, but as Huang pointed out, its offerings have largely been constrained to high-end gaming systems. "There's an entire segment of the market where the CPU and the GPU are integrated. It's integrated for form factor reasons, maybe it's for cost reasons, maybe it's for battery life reasons, all kinds of different reasons. And that segment has been largely unaddressed by Nvidia today," Huang said. "That segment of the market is really quite rich, and it's really quite large, and it's underserved today." Nvidia has been moving in this direction for a little while now. Some versions of the tiny GB10 Superchip built in collaboration with MediaTek are also expected to see wider availability at some point. So, it's not just Intel CPUs getting the Nvidia graphics treatment. But the deal could mean bad news for Intel's in-house graphics division. Intel has been trying to expand its influence over the PC graphics market with its Arc GPUs for several years now with limited success. While Nvidia may be cozying up to Intel, that doesn't mean its relationship with Arm is over. "Our Arm road map is going to continue. We're fully committed to the Arm road map. We have lots and lots of customers for Arm. We're building the next generation of Vera," Huang said. Nvidia unveiled the next-gen CPU, which is set to launch alongside its Rubin family of GPUs next year, at GTC this spring. The part will feature 88 custom Arm cores with simultaneous multithreading and 1.8TB/s of NVLink-C2C connectivity. Nvidia has a long-standing relationship with both Arm and Arm-based SoC designers. Prior to its 72-core Grace CPUs, Nvidia worked with Arm on its Tegra family of chips, which power consoles like Nintendo Switch. And as we previously reported, Intel has extended similar support for its NVLink tech to Qualcomm and Fujitsu. Despite ongoing efforts to expand its domestic manufacturing capacity, Huang emphasized that Nvidia's partnership with Intel is primarily focused on products, not manufacturing. "We've always evaluated Intel's foundry technology, and we're going to continue to do that. But today, this announcement is squarely focused on these custom CPUs," Huang said. Intel of course still needs to find a hero customer for Foundry, but Nvidia isn't ready to make that commitment just yet. Nvidia will continue to manufacture its chips at TSMC fabs, whether that be in Taiwan or Arizona. However, Intel Foundry may still benefit indirectly. While TSMC will make Nvidia's GPU chiplets, Foundry will likely end up doing the packaging and final assembly. Huang was quick to praise these technologies, which he said are the reason that the two companies are going to be able to bring joint products to market so quickly. ®

Nvidia's deal with Intel has far reaching implications, and most of them aren't good

Nvidia's surprise partnership with Intel, sealed by a $5 billion investment, has raised several eyebrows across the tech industry. Subject to regulatory approval, the world's leading GPU maker is taking, roughly, a 4% stake in one of the world's biggest CPU companies, and what's more, both companies intend to jointly build multiple generations of chips for both consumer machines and data centers. On the surface, it sounds interesting; fusing Nvidia's graphics chops with Intel's CPUs sounds like some powerful hardware in the making, but to be honest, it's just kind of worrying. What did Intel and Nvidia agree on? Intel will be tightly coupled with Nvidia Before looking into the implications, we'll first look into the deal itself. Nvidia is investing $5 billion into Intel's common stock, valued at $23.28 per share. It offers Intel some much needed cash while giving Nvidia influence over Intel and at a discounted rate. Before the news broke, Intel's stock was valued at $25.01 from the previous day's close. It's not just a soft collaboration, though. As a core component of the partnership, Intel will both design and manufacture x86 CPUs that make use of Nvidia's NVLink interconnect for connecting Intel CPUs and Nvidia GPUs, facilitating usage in AI-centric data centers. For consumers, things get very interesting: Intel has said that it will develop x86-based SoCs that integrate Nvidia's RTX GPU chiplets. In other words, Intel will design SoCs that use Nvidia's integrated graphics for the x86 consumer market. Understandably, leadership of both companies have come across incredibly pleased. And why wouldn't they be? A single chip package combining an Intel processor and an Nvidia GPU (connected via NVLink) could do wonders when it comes to AI performance, in both data centers and in consumer-grade hardware. The fact that it's subject to regulatory approval is important, though, because there are a lot of potential implications of this deal. Intel's GPUs have a rocky road ahead Though apparently there will still be "GPU offerings" In the last couple of years, Intel re-entered the discrete GPU market (if you count the AGP-only i740 released in 1998 as being the first entry, anyway) with its Arc series after two decades of integrated graphics. It originally positioned itself as a third-player alongside Nvidia and AMD, but by effectively out-sourcing its graphics to Nvidia, where's the incentive to continue investing in its GPUs? Intel might not outright abandon its GPU strategy, but whatever heavy investment was being made is unlikely to continue to the same degree. Think about it: much of Intel's graphics capabilities come from its work in the integrated graphics market over the last few years. Looking to the Intel Arc B580, for example, you'll see that it packs 20 Xe2 cores and 12 GB of VRAM. However, Lunar Lake featured the same architecture for its integrated graphics, packing eight Xe2 cores. Of course, there's a big difference between integrated graphics and dedicated graphics, but the relationship is there. Now, with that knowledge, read the press release again. Specifically this part: Intel will build and offer to the market x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets. If those x86 SoCs include RTX GPU chiplets, it's clear that Intel's integrated graphics are getting chopped, or at the very least, will be found in fewer Intel chips. After all, Nvidia has experience with getting RTX cores into an integrated chip anyway, such as in the case of the Nintendo Switch 2's T239 SoC. The overall plan here essentially swaps out Intel's GPU for an Nvidia one, a call-back to the Kaby Lake-G days where Intel included an AMD RX Vega GPU for integrated graphics. Not only does packing Nvidia's RTX chiplets here mean a big boost to graphics performance, it suddenly makes Intel competitive with AMD in the gaming handheld market. For consumers, this could mean fewer options in the graphics market, especially when it comes to dedicated GPUs. AMD and Nvidia were the titans duking it out for a long time, though recent generations saw Nvidia leap ahead with the best of AMD merely going toe to toe with the RTX 4080. Intel didn't offer the best performance, but it certainly showed promise. The Arc A770 received a lot of praise for its price to performance ratio, and it's even capable of running some local AI workloads. To Intel's credit, the company has made it clear in a statement to PC World that its GPUs will continue in some form: We're not discussing specific roadmaps at this time, but the collaboration is complementary to Intel's roadmap and Intel will continue to have GPU product offerings With that being said, "Intel will continue to have GPU product offerings" is a fairly vague statement, and it seems from the outside looking in that not even Intel knows what's going to happen next. Many leaks over the past few months have pointed to Intel preparing a launch for the Arc B770, and even if that still materializes later this year, what happens to the next generation of Celestial cards? All of this is to say that if Intel bows out of the GPU race as a result of the Nvidia deal, then Nvidia's dominance only grows. Intel was a tiny, tiny percentage of the market, but if it had managed to make serious strides within a generation or two, that would have chipped away at Nvidia while potentially acting as a downward force to bring prices down. Plus, if Intel does continue to release dedicated GPUs, it's a bit strange to be in direct competition with someone who owns a percentage of your company. The conflict of interest alone leaves a lot more questions than answers. Nvidia suddenly gained a say in x86 chips, so what happens to Arm? Nvidia also claims to be committed to Arm, still Nvidia's computational foray has always taken place in the world of Arm, such as its Tegra chips which powered tablets, the Nvidia Shield, and the Nintendo Switch. Its Grace CPU can also be found in servers, and Project DIGITS saw the NVIDIA Grace Blackwell GB10 combine its Arm-based Grace CPU with Blackwell computational cores for graphics and local inference. Nvidia even tried to buy Arm a couple of years ago, with the deal falling through thanks to legal scrutiny and regulatory pushback. Nvidia's focus on Arm wasn't just because it liked Arm; in fact, very few companies have an x86 license. Right now, for PCs, only Intel, AMD, and Chinese-based Zhaoxin hold licenses that allow for producing processors using the x86 architecture. This is thanks to the complicated shared ownership that both AMD and Intel have over it, with the two companies wrapped up in a cross-licensing agreement of many different patents. Technically speaking, the 1999 verison of x86 could be reverse engineered and reimplemented, but the extensions, compiler, and IP blocks to accelerate those extensions would still prevent anything meaningful from being produced by someone without a license. What can Nvidia do? It could try to acquire a license to x86, but even if Intel wanted to, AMD would need to agree to give a big competitor access to it as well. Instead, Nvidia went to Intel, essentially piggybacking off of Intel's license to the architecture to produce chips in the x86 ecosystem. Many data center workloads and high-end computers still favor x86 over Arm, and this is, realistically, the only way that Nvidia can get its graphics integrated into x86 SoCs. Think about Nvidia's position before the deal: everyone knows that Nvidia's GPUs are the best of the best, but for a tight GPU-CPU coupling, the best Nvidia could offer was its Arm-based designs, or rely on AMD and Intel CPUs while relying on connectivity over standard interfaces or NVLink for inter-GPU communication. Now, Nvidia can get the best of both worlds, by offering x86 options built to its specifications. What this means for Arm is unclear, and Nvidia CEO Jensen Huang stated in a joint webcast that this partnership doesn't affect any of that. However, Nvidia's long-rumored N1X SoC was said to be Arm-based and targeted at Windows on Arm machines, and renowned Apple analyst Ming-chi Kuo said the following, per a machine translation: For Nvidia, developing its own Windows-on-ARM processors is highly uncertain; for Intel, rapidly becoming competitive in the GPU space is very difficult. By combining strengths (CPU + GPU), the two companies are expected to generate strong synergies and advantages in the PC ecosystem. Does that mean N1X faces a risk of being canned? The truth is that we don't know, but what we do know is that x86 has become a big part of Nvidia's future, even if Nvidia remains committed to its Arm roadmap. Deals like this don't crop up overnight, but given that the company has a direct say in some x86 chips which it never had before, Nvidia certainly has less of an incentive to champion Arm in certain segments. For example, would Nvidia still push a consumer Arm CPU to challenge x86 PCs in the future, or will it instead funnel those efforts into this Intel partnership? Finally, when it comes to the fabrication process, things are a bit murky there, too. Intel has historically used its own fabrication facilities, though has outsourced much of its recent offerings to TSMC. Intel's upcoming Panther Lake is fabricated on the company's new Intel 18A process, but there have reportedly been roadblocks when it comes to yield. Yield refers to the percentage of chips that are actually usable from the fabrication process, and is a process that tends to improve over time. We have no details on what the fabrication process will look like for these chips, but we know that Intel's stumbles have been well-documented over the years. Given that Intel CEO, Lip-Bu Tan, said "Intel's leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA's AI and accelerated computing leadership," it's hard to glean any specific information aside from a general acknowledgment that Intel can produce the chips. What we do know is that orders at fabrication facilities are often placed a year or more in advance, and given TSMC's technological prowess, it's likely that we'll still see these companies using TSMC for quite a while into the future yet. As well, given that we're talking about chiplets, it's possible for Nvidia to produce its RTX GPUs at TSMC, Intel to produce other parts of the chip in its own fabs, then bring the two together for packaging. AMD is the real loser here AMD stands to lose out in data centers and gaming handhelds If there's a clear loser in this development, it's AMD, the one company that competes with both Intel (in CPUs) and Nvidia (in GPUs). AMD now faces a scenario where its two biggest rivals are joining forces, coordinating their strengths in ways that could complete oust AMD from key markets. AMD has been doing phenomenal work in the consumer CPU space over the last few years, but its been doing really well in the enterprise space, too. Its data-center offerings actually outsold Intel for the first time ever in 2025's Q2, though a third of AMD's revenue in this area comes from its Instinct MI300X GPUs. Still, EPYC has been gaining ground for a while, thanks to its impressive power efficiency and better performance. In the consumer space, AMD is going to face real trouble. Its APUs have been incredibly competitive; so much so that the company has basically owned the gaming handheld space over the past couple of years. Intel's attempt went rather poorly at the start (though got better as time went on), but an Intel CPU with an Nvidia GPU? AMD suddenly looks significantly less appealing, especially given that its first-mover advantage and graphical prowess when compared to Intel will likely evaporate immediately. As for AMD's growth in the data center segment, both Intel and Nvidia are clearly taking aim there, too. While the excitement for consumers undoubtedly rests on what an "x86 RTX SoC" can bring to the table, an Intel CPU with an Nvidia GPU for high-performance computing can directly compete with AMD's own EPYC and Instinct combination. NVLink support between CPU and GPU is particularly interesting here, as AMD CPUs more loosely interface with Nvidia GPUs. Nvidia is playing a strong hand here; by propping up Intel (which it clearly doesn't see as a threat), AMD struggles as a result. Plus, if cloud vendors can buy an Nvidia HGX box that comes with custom Intel CPUs built-in, they might be less inclined to buy AMD CPUs for Nvidia GPU clusters. For consumers and the industry, reduced competition is rarely good news. AMD has been the underdog in a lot of ways, forcing Intel to lower CPU prices and forcing Nvidia to keep GPU prices somewhat in check, though the latter was more in the mid-2010s rather than in the last couple of years. If AMD's ability to compete diminishes, say its CPU gains stall because Intel's products improve thanks to Nvidia, and its GPU sales suffer against an Nvidia that faces no Intel threat, the end result could be higher prices or slower innovation. We've seen this scenario before. When AMD nearly went bankrupt in the mid-2010s, Intel's CPU advances stagnated for years due to lack of competition. This Nvidia and Intel alliance could risk a similar dynamic occurring in GPUs or even AI accelerators, with AMD's future suddenly carrying a giant question mark. What happens to UA Link? The open-standard alternative to NVLink Intel's collaboration with Nvidia centers on NVLink, Nvidia's proprietary high-bandwidth interconnect. This is what will glue Intel CPUs to Nvidia GPU chiplets at high speed, especially in those data-center custom chips. However, what some have overlooked is that Intel had been working on an open alternative to NVLink, dubbed UA Link. UA Link, or Ultra Accelerator Link, is a standard supported by 75 other companies such as Google, Broadcom, AMD, and more. What it's meant to achieve is very similar to what Nvidia does achieve with NVLink. It's designed as an open-standard for CPU-to-accelerator connectivity, and was spearheaded by AMD atop its Infinity Fabric technology. It's essentially a vendor-agnostic way for CPUs, GPUs, and other accelerators to talk to each other at high speed. But with Intel pivoting to NVLink for its future designs, what happens to UA Link? In the short term, Intel will probably continue to support UA Link for products already in the pipeline, as existing customers won't be abandoned overnight. With that said, why would Intel push an open interconnect standard that could help AMD or others, when it can use Nvidia's solution exclusively in its own chips? This causes fragmentation and potentially kills an open standard in its tracks, and while NVLink previously allowed for the interconnectivity of Nvidia GPUs, you could still pair it with an AMD EPYC CPU. Now, though, the direct link to Intel's CPU can lead to vendor lock-in, as Nvidia's GPUs for data centers may perform at their best when paired with Intel's NVLink-supporting CPUs in the future. In contrast, had UA Link succeeded, a data center could mix and match CPU and accelerator vendors with a common interconnect. Now, though, we could see a market split with Intel and NVLink on one side, and UA Link on the other. And since Nvidia's GPUs are still the best for data centers, high-performance computing, and AI, companies have no reason to leave that ecosystem and instead have reason to switch to Intel CPUs because of that increased integration thanks to NVLink. We still need to see how it plays out Regulatory approval may come with several stipulations At the end of the day, Nvidia and Intel's partnership represents a potentially major shift for the industry. Sure, on paper, combining Intel's CPUs and Nvidia's GPUs could deliver some of the most compelling consumer and enterprise hardware we've ever seen. But beneath all of that lies something more sinister: competition gets weaker, and open standards are put at risk. Plus, one of the few companies still somewhat successfully pushing against Nvidia's dominance and very successfully pushing against Intel's may end up finding itself sidelined. For consumers, all of this could mean fewer choices and even higher prices. It could mean innovation slows down again. And it could be the death knell for what was once an exciting open standard. The real winners are obvious: Nvidia gets a way into x86, Intel gets much-needed cash and additional relevance, while uniquely positioning itself to compete in gaming handhelds and data-center offerings with Nvidia's computational prowess. Right now, the deal is subject to regulatory approval. I imagine that there will be some pushback from other companies in the space, but I personally find it unlikely that there will be much pushback from the current U.S. administration. The U.S. has a vested interest in Intel's success, and with the U.S. government recently taking a 10% stake in Intel, this further serves to benefit its investment. That's not say the deal won't face any roadblocks, but I suspect that this is a seismic shift which, in the long-run, likely won't favor us consumers.

Nvidia bets big on Intel with $5 billion stake and chip partnership

SAN FRANCISCO, Sept 18 (Reuters) - Nvidia (NVDA.O), opens new tab on Thursday said it will invest $5 billion in Intel (INTC.O), opens new tab, throwing its heft behind the struggling U.S. chip foundry, but stopped short of giving Intel a crucial manufacturing deal. The pact, which also includes a plan for Intel and Nvidia to jointly develop PC and data center chips, represents a potential risk to Taiwan's TSMC (2330.TW), opens new tab. TSMC currently manufactures Nvidia's flagship processors, business that the world's most valuable company could one day extend to Intel. AMD (AMD.O), opens new tab, which competes with Intel for supplying chips to data centers, also stands to lose thanks to Nvidia's backing. Shares of Intel surged more than 32% in premarket trading, while Nvidia was up more than 3%. AMD slipped nearly 4%, while U.S.-listed shares of TSMC slid 2%. Nvidia, whose must-have chips are powering a global artificial intelligence boom, said in a statement it will pay $23.28 per share for Intel common stock, a price slightly below the $24.90 at which Intel shares closed on Wednesday. However, that is higher than the $20.47 price per share that the United States government paid for an extraordinary 10% stake it took in Intel last month. Nvidia will become one of Intel's largest shareholders, likely owning 4% or more of the company after new shares are issued to complete the deal. Nvidia's support represents a new opening for Intel after years of turnaround efforts at the famed U.S. manufacturer failed to pay off. The company - once the chip industry's flagbearer that claimed to put the "silicon" in Silicon Valley - appointed a new CEO, Lip-Bu Tan, in March. Tan has vowed to make Intel's operation lean and build factory capacity only when there's demand to match it. Crucially, the deal will not involve Intel's contract manufacturing business, known as a "foundry" in the chip industry, making chips for Nvidia. Most analysts believe that for Intel's foundry to survive, it would need to eventually win a large customer such as Nvidia, Apple, Qualcomm or Broadcom. But the deal adds to a growing reserve of capital that Intel has accumulated weeks after it announced a $2 billion investment from Softbank and received $5.7 billion from the U.S. government. David Zinsner, Intel's chief financial officer, told investors at a Deutsche Bank conference last month that the company was in a "good cash position" and would not require much more capital until it saw significant demand for 14A, a next-generation manufacturing process that it expects to invest heavily in building. SPEEDY LINKS Under the deal announced Thursday, Intel is planning to design custom data center central processors that Nvidia will package with its AI chips, known as GPUs. A proprietary Nvidia technology will let the Intel and Nvidia chips communicate at higher speeds than before. Those speedy links are a key differentiator in the AI market because many chips must be strung togetherto act as one to chew through massive amounts of data. At present, Nvidia's best-selling AI servers with those speedy links are only available using Nvidia's own chips, but the deal would now put Intel on equal footing, giving it a chance to make money off each Nvidia server. The combined Nvidia-Intel chips could provide a major competitive challenge to AMD, which is developing its own AI servers, and Broadcom (AVGO.O), opens new tab, which also has chip-to-chip connection technology and helps companies such as Google develop AI chips. For consumer markets, Nvidia will provide Intel with a custom graphics chip that Intel can package with its PC central processors with the same speedy links, potentially giving it an edge against rivals such as AMD. While Intel's x86 computing architecture has lost ground in both data centers and PCs to chips with technology from Arm Ltd, it still has majority market share. "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 a press release. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." The two companies did not disclose financial terms of their technical collaboration but said they would make "multiple generations" of future products. Nvidia and Intel officials described the collaboration as a commercial arrangement under which they will provide chips to one another to create products and said there was no licensing component to the deal. The companies declined to give a date for when the first joint products will come to market but said that their product plans prior to the joint deal have not changed. Nvidia in recent years has entered both the PC central processor market and the data center central processor market. Intel meanwhile has tried to sell several AI chips that compete with Nvidia and has said it plans to develop an AI data center server that would compete with Nvidia. Reporting by Stephen Nellis, Jeffery Dastin and Max Cherney in San Francisco; Editing by Sam Holmes Our Standards: The Thomson Reuters Trust Principles., opens new tab

Teams at Nvidia and Intel have been working in secret on jointly developed processors for a year -- 'The Trump administration has no involvement in this partnership at all'

Intel and Nvidia have been working on the jointly developed processors for client and data center products for about a year now as both companies see huge opportunities behind their Intel x86 RTX SoCs and custom Nvidia x86 data center processors. Although the Nvidia CEO Jensen Huang said in a press call that the Trump administration was pleased with the collaboration between two leading U.S. companies, it had nothing to do with it. "The Trump administration had had no involvement in this partnership at all," said Nvidia's Huang said, during the joint press conference with Nvidia on Thursday. "They would have been very supportive, of course. Today I had the opportunity to tell Secretary [of Commerce Howard] Lutnick and he was very excited and very supportive of seeing two American technology companies working together." The work began around a year ago, and preliminary agreements were reached by Intel's then-CEO Pat Gelsinger and Nvidia's Jensen Huang even before that. (A year ago, Joe Biden was president, though no one suggested his administration was involved, either.) Intel and Nvidia are working on custom data center CPUs that Nvidia will integrate into its AI platforms as well as GPU tiles that Intel will integrate into its upcoming client processors. In both cases CPUs and GPUs will use Nvidia's NVLink technology as an I/O interface. By now, there are three teams working together on the joint projects. "The two technology teams have been discussing and architecting solutions now for probably coming out to a year," said Jensen Huang, chief executive of Nvidia. "The two architecture teams... Well, it is three architecture teams are working across... the CPU architecture, as well as product lines for server and PCs. The architecture work is fairly extensive, and the teams are really excited about the new architecture. The teams have been working for a while and we are excited about the announcement today." As Huang mentioned teams working on a CPU architecture as well as client and data center product lines, we figure out that Nvidia wants rather deep customizations of Intel's Xeons to meet the needs of its AI platforms. The involvement of a CPU architecture team highlights the depth of the partnership between Intel and Nvidia as well as indicates that the CPU company is implementing rather deep optimizations required by next-generation AI platforms. Given Nvidia's history with Grace and Vera CPUs (custom Arm) and the high bandwidth needs of its next-gen GPUs (e.g. Rubin, Feynman, post-Feynman, etc.), it is reasonable to expect tailored cache structures, memory IO, and coherency protocols on these x86 CPUs. Such a deep collaboration probably means that custom Intel processors will be used by Nvidia sometimes in the post-Vera Rubin platform era. We would certainly expect Nvidia's data center GPU team to work with Intel as well, but Huang never mentioned one during the call, probably because Feynman GPUs have already been defined by now. Yet, he mentioned that there are two more teams working on product lines for server and PC products, which probably points to data center system level architecture team on Nvidia's side as well as client CPU/system level architecture team on Intel's side. While the collaboration between Intel and Nvidia on the data center front is a multi-faceted cross-organizational effort, the timing to its fruition is tied to emergence of Intel's custom CPUs for Nvidia. As for the joint work on client project (or projects), developing an Intel CPU with Nvidia GPU chiplet will take at least three to four years from drawing board to volume production. The collaboration requires deep integration across SoC fabrics, dimensions, performance/power consumption targets, packaging technologies (Foveros, EMIB), and software stacks from both companies. The collaboration likely began in 2024, so the first products could hit the market in late 2027 or early 2028. While we do not know for sure when Intel and Nvidia plan to come up with jointly developed products, it looks like they intend to address a broad range of applications. At least, Jensen Huang said that that the two companies plan to build CPUs that could address the vast majority of notebooks, which points to hundreds of millions of devices. "Just the notebook market is 150 million notebooks sold each year," said Huang. "So that kind of gives you a sense of the scale of the work that we are going to do here. We are going to address the consumer market, we are going to address a vast majority of that consumer PC market, consumer PC notebook market."

Nvidia throws Intel a lifeline that should be a boon to investors in both chipmakers

Nvidia is throwing beleaguered rival Intel a lifeline in a surprising partnership with significant ramifications across the semiconductor industry. The deal announced Thursday has two main parts: Nvidia will purchase $5 billion into Intel common stock, joining Japanese conglomerate Softbank and the U.S. government as new investors in the iconic semiconductor firm attempting a revival under CEO Lip-Bu Tan. But, crucially, they're cozying up on the product side for both data centers, where Nvidia dominates the market for high-powered AI chips known as GPUs, and personal computers, where Intel maintains a strong foothold with its traditional computer processors called CPUs. Shares of Club name Nvidia rose nearly 3% Thursday, while Intel's stock soared more than 25%. The disproportionate market reaction makes sense, considering the scale of Intel's problems -- both financially and fundamentally -- means this partnership improves its future prospects a lot more than it does for Nvidia. Still, count this as an Nvidia win, too. "What this does is cement Nvidia as being the company that has, basically, a soup-to-nuts offering. You go all the way from the PC to the highest end," Jim Cramer said Thursday morning. "We were all talking about Nvidia and China yesterday," Jim added, in reference to reports Wednesday that the Chinese government was banning companies from using Nvidia's AI chips. "Now we should be talking about Nvidia as being the colossus." NVDA INTC 5Y mountain Nvidia's five-year stock performance versus Intel. Data centers For data centers, Intel will develop custom CPUs to pair with Nvidia's AI infrastructure products anchored by its cutting-edge GPUs. Nvidia does make its own CPU for those products already, but they take advantage of a different architecture than the CPUs that Intel has long sold into data centers. Nvidia has been using the Arm instruction set to build CPUs, while Intel and Advanced Micro Devices use what's called x86. Historically, x86 is the go-to architecture for data centers CPUs and they still have a lot of market share. Arm-based CPUs are the newcomer, with Amazon Web Services' in-house Graviton chips and Nvidia's Grace CPUs leading the charge. In simple terms, Arm is seen as a simpler, more power-efficient architecture than x86, which is why it's been used widely in chips for mobile phones. By contrast, x86 is viewed as better equipped for tasks where performance is the priority. No doubt, performance matters a great deal for AI computing. Nvidia is still planning to develop Arm-based CPUs despite the Intel partnership, Nvidia CEO Jensen Huang said on a Thursday afternoon call with reporters. For example, Nvidia was already readying its second-generation Arm-based CPU for release next year as part of its Vera Rubin AI platform. Huang said that Vera CPU is still full-systems go, and he added there are other Arm-based products that Nvidia is developing to serve markets such as robotics. Instead, he said, the Intel partnership will allow Nvidia to better serve customers who are entrenched in the x86 ecosystem as a result of tighter integration between Nvidia's GPUs and Intel's CPUs inside data center server racks. Analysts and investors are worried about the implications for Arm Holdings , which licenses the Arm instruction set to customers. The stock is down more than 3% on Thursday afternoon, even after Huang's comments. Time will tell on what, exactly, it means for Arm. But it is fair to argue that, in the future, some of the money that may have gone to Arm for Arm-based CPUs will now go to Intel for x86-based CPUs. Nvidia once tried to buy Arm Holdings, but that deal was thwarted by regulators. Jim said this arrangement with Intel is better for Nvidia than outright owning Arm. Wall Street also is trying to figure out what the partnership could mean for AMD, which is both trying to compete with Nvidia in the booming AI chip market and, in recent years, has successfully grabbed a lot of share from Intel in the x86 CPU market. AMD's stock is down about 2% Thursday. Personal computers On the other side of the deal, Intel will integrate Nvidia's graphics cards into system-on-chips, or SoCs, that Intel designs for personal computers. These SoCs contain many of the key ingredients for computers -- including the traditional processor, the graphics processor and memory -- all onto a single piece of silicon. These Intel-plus-Nvidia SOCs will power "a wide range of PCs that demand integration of world-class CPUs and GPUs," Nvidia said in a press release. Nvidia already has a presence in the PC market, but it's primarily concentrated in higher-end products targeted toward gamers and workstations used by professionals -- something Huang pointed out on Thursday's call with reporters. This arrangement could lead to Nvidia growing its presence in the broader consumer PC market, where Intel is still well-regarded. There are "a 150 million laptops sold each year and we're now going to combine the best CPU and the best GPU, so it's really, really exciting," Huang said. While the scale of the data center AI market dwarfs PCs, that doesn't mean this isn't worth pursuing for Nvidia. "I'm not saying Jensen was desperate for PC, but it just fell into his lap," Jim said. In a note to clients, analysts at Wolfe Research makes Intel more competitive in PCs and therefore is "marginally negative" for AMD, which in 2024 derived a little over a quarter of its revenue from its PC segment; about half came from data center. In Nvidia's most recent fiscal year, for comparison, almost 90% of its sales were from its data center segment. Could there be more? The biggest question hanging over the entire Intel-Nvidia deal on Thursday: Will Nvidia end up using Intel's third-party manufacturing business -- dubbed Intel Foundry -- to make any of its products? The answer, according to Huang, is not right now. "We've always evaluated Intel's foundry technology and we're going to continue to do that," Huang said on Thursday's media call, in response to a question from Jim. "But today, this announcement is squarely focused on these custom CPUs. With this partnership, we're essentially going to be a major customer of Intel server CPUs. This is the very first time." Nvidia designs its chips then relies other companies, primarily Taiwan Semiconductor Manufacturing Co., to produce them. TMSC is the world's dominant producer of the most advanced semiconductors, typically called "leading edge" chips. Compared with Nvidia and AMD, Intel stands out for both designing chips and manufacturing them. However, its leading-edge manufacturing prowess has fallen behind the likes of TSMC and South Korea's Samsung Foundry. Getting Intel Foundry back on track has been both a strategic priority for Intel's management team and the U.S. government, which, for national security purposes, wants an American company to be able to produce advanced chips on American soil. To date, though, one of the big challenges has been convincing third-party companies that compete with Intel on chip design to utilize tits manufacturing services. That is why there is so much focus on the question of whether this Nvidia partnership could, eventually, lead Nvidia to become a customer of Intel Foundry. Indeed, even after Huang answered his first question on Intel Foundry, he fielded multiple additional questions on the topic. Huang would go on to praise TSMC's leadership -- "You just can't overstate the magic that is TSMC," he said -- before steering the conversation back toward the CPU partnership. As for whether Nvidia's decision to forge closer ties with Intel was politically motivated, Huang said the Trump administration had "no involvement in this partnership at all." Nvidia expects a "fantastic" return on its $5 billion investment, Huang said. (Jim Cramer's Charitable Trust is long NVDA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. 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Nvidia to invest $5 billion in Intel; companies will work together on AI infrastructure and PCs

NEW YORK (AP) -- Nvidia, the world's leading chipmaker, announced a new partnership on Thursday with struggling semiconductor company Intel. Nvidia and Intel will team up to work on custom data centers that form the backbone of artificial intelligence infrastructure as well as personal computer products, Nvidia said in a press release. Nvidia also said it's investing $5 billion in the common stock of Intel, which has been struggling. The deal is subject to regulatory approvals. The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that's propelled Nvidia into the world's most valuable company.

NVIDIA throws Intel a $5 billion lifeline to build PC and data center CPUs

NVIDIA has today announced it will invest $5 billion in Intel as part of a new collaboration between the two companies. In a statement, NVIDIA said it would work with its ailing rival to "jointly develop multiple generations of custom data center and PC products." The partnership will focus on "seamlessly integrating" NVIDIA's class-leading GPUs and AI chips with Intel's ailing x86 CPUs. Some of that work will be based on harnessing NVLink, NVIDIA's existing system to marry-up x86 CPUs with its own silicon in big data center setups. And Intel will also be tasked with building "NVIDIA-custom x86 CPUs" for integration with the latter company's AI products. More interestingly for consumers, however, is the news Intel will "build" what's being described as "x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets." The quote says these "RTX SOXs will power a wide range of PCs that demand integration of world-class CPUs and GPUs." Now, it's not clear if this means the end of Intel's in-house graphics silicon, or if they'll be built in Intel's own foundries. But the consequences of such a move could be wide-ranging if the focus is on broadening access to NVIDIA's high-end GPU technology. The statement includes personal remarks from both NVIDIA CEO Jensen Huang, who says the deal "tightly couples" Intel's x86 CPUs with NVIDIA's AI technology. Intel CEO Lip-Bu Tan, meanwhile, says the deal will combine its CPU know-how, its "process technology, manufacturing and advanced packaging capabilities" with NVIDIA's. If we take that at face value, it could be that NVIDIA has opted to use Intel's foundry -- chip manufacturing for third parties -- business to build some of its own silicon. But given Intel has struggled to find customers for that business, and the repeated failure of its ability to build its own chips, we'll be interested in seeing how this all shakes out. Especially if NVIDIA, for far less than the cost of buying Intel outright, has essentially turned its former rival into a sales front for its own tech. Intel's leadership space in the chip world has been eroded over the last two decades as momentum shifted toward its rivals. It developed, and then passed on, the EUV manufacturing technology that enables the chips found in most smartphones and GPUs. It was given the opportunity to invest and collaborate with OpenAI back in 2017, but passed on that and therefore missed its shot with the AI Boom. And, of course, its own engineering momentum slowed as it became harder to make faster chips with its older processes while TSMC, who went all-in on EUV, scored a galaxy of blue chip clients like Apple, Qualcomm and NVIDIA. Intel then fired then-CEO Pat Gelsinger at the end of 2024, who was widely known as the only figure who would have been able to pull Intel back from the brink. Meanwhile, rivals like Qualcomm and ARM began circling in the hope of buying some or all of the company. And while Intel has seen its previously-healthy revenues fall, NVIDIA has seen record profits on the back of the AI boom.

Some of Intel's future chips will integrate Nvidia RTX GPUs

Summary Nvidia invested $5B in Intel and partners to build x86 SOCs combining Intel CPUs with RTX GPU chiplets. x86 RTX SOCs aim to power a range of PCs, improving laptops and handheld gaming with tighter CPU-GPU integration. Intel may focus on affordable GPUs while Nvidia keeps the high-end; SOCs could reshape mid-range GPU roles. As the AI scene heats up, hardware companies have been pushing to ensure they're at the forefront of the revolution. After all, if they can't provide for a potential world where people run LLMs on their system, someone else definitely will. To ensure they both keep commanding positions in the PC hardware world, Nvidia and Intel have teamed up to develop system-on-chips (SOCs) that tap into both Nvidia's GPU expertise and Intel's long history in CPU design. And while both companies are making a big push into the world of AI infrastructure, consumers will also see a benefit. Intel and Nvidia join forces to create mighty SOCs for all Over on the Nvidia Newsroom, the company announces that it has invested $5 billion into Intel's stock, alongside a partnership that sees the two designing an SOC that leverages Intel's CPUs and Nvidia's GPUs. While the main goal is to supply an AI-hungry world with hardware, consumers are also getting some advancements of their own. Nvidia announced that Intel will construct x86 SOCs that use RTX GPU chiplets on them. Nvidia calls them "x86 RTX SOCs" and claims they'll eventually find their home inside PCs worldwide. The company didn't elaborate on what these SOCs will look like in terms of hardware. Still, it did say they'll "power a wide range of PCs that demand integration of world-class CPUs and GPUs," which sounds very exciting, especially for laptop and handheld gaming enthusiasts. NVIDIA founder and CEO Jensen Huang is pretty pleased with the collaboration: "AI is powering a new industrial revolution and reinventing every layer of the computing stack -- from silicon to systems to software. At the heart of this reinvention is NVIDIA's CUDA architecture. 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. Together, we will expand our ecosystems and lay the foundation for the next era of computing." While this all sounds good on paper, it raises the question: if Intel has teamed up with Nvidia, what will it do with its own GPUs like Battlemage? We may see them fill a low-to-middle-end niche with a strong focus on affordability, while Nvidia leads the way with high-end products. At the same time, one could argue that, if these x86 RTX SOCs are mighty enough, they'll handle the demands of middle-end devices by themselves, which puts Intel in a weird spot, GPU-wise. We'll have to wait and see what happens.

NVIDIA invests $5B in Intel, launches joint AI and PC chip venture

NVIDIA will invest $5 billion in Intel, becoming one of its largest shareholders and striking a partnership to build future data center and PC chips jointly. The deal marks a major lifeline for Intel, which has struggled for years to regain its footing in the semiconductor industry. Intel's shares surged 23% on Thursday following the announcement. The two companies will jointly design multiple generations of products. For data centers, Intel will build custom x86 CPUs that NVIDIA will integrate into its AI infrastructure platforms.

Intel and NVIDIA Will Make x86 Hardware

NVIDIA and Intel have announced a historic collaboration that will see them jointly develop a new generation of custom processors for both data centers and personal computers. NVIDIA is also investing $5 billion in Intel's common stock. This is a bit strange, especially when you consider the fierce competition between the two companies over the years. This collaboration is set to integrate NVIDIA's AI and accelerated computing with Intel's CPU technologies, creating what the companies are calling "a fusion of two world-class platforms." Even still, this feels like the start of something amazing if the two can remain partners long enough to release hardware. For years, we've had the AMD versus Intel rivalry on the CPU front and the AMD versus NVIDIA battle in the GPU space. Now, with this new agreement, Intel will be building x86 system-on-chips (SoCs) that will have NVIDIA's RTX GPU chiplets integrated directly into them. This is a huge shift in the industry and could mean a whole new breed of powerful laptops and PCs that have the best of both worlds. I'm looking forward to seeing a laptop with an Intel CPU and a powerful NVIDIA RTX GPU on the same chip, working together seamlessly. I have no doubt that I would not be able to afford it, but just seeing it in action would be enough. The two companies will focus on seamlessly connecting their architectures using something called NVIDIA NVLink. For those of you who don't know, NVLink is a high-speed communication link that lets GPUs, and now apparently CPUs and GPUs, talk to each other with a ton of bandwidth and very little latency. NVIDIA NVLink is a technology that has been a cornerstone of NVIDIA's high-performance computing and AI platforms for years, and now it will be a key part of these new Intel products. It should translate to some serious performance gains, especially for things like gaming and content creation, where the CPU and GPU need to work together without a hitch. This collaboration is just as important on the data center side. Intel will be designing and manufacturing custom x86 CPUs that NVIDIA will use in its AI infrastructure platforms. This is a big win for Intel's manufacturing business and a sign of trust from NVIDIA, a company that has been a huge force in the AI revolution. NVIDIA's founder and CEO, Jensen Huang, said that this collaboration will "tightly couple" NVIDIA's AI and accelerated computing stack, which is built on its CUDA architecture, with Intel's CPUs and the vast x86 ecosystem. With NVIDIA's $5 billion investment in Intel's common stock, it's clear that this is more than just a simple product deal. It is likely a long-term commitment from NVIDIA, and a huge lifeline for Intel, which has been struggling lately. However, Intel is no stranger to these deals. Just a year ago, Intel and AMD were teaming up to create a group to make sure the x86 platform would continue to evolve and compete with the growing threat of ARM-based chips. Intel's new partnership with NVIDIA, one of the biggest players in the ARM ecosystem, will likely prove even more beneficial for the company. Source: Intel

Nvidia CEO Huang says $5 billion stake in rival Intel will be 'an incredible investment'

Nvidia CEO Jensen Huang attends the "Winning the AI Race" Summit in Washington D.C., U.S., July 23, 2025. Nvidia CEO Jensen Huang said that the company's $5 billion investment and technology collaboration with Intel comes after the two companies held discussions for nearly a year. Huang said that he communicated personally with Intel CEO Lip-Bu Tan about the partnership. He called Tan a "longtime friend" on a Thursday call with reporters after the companies announced that Nvidia would co-develop data center and PC chips with Intel as part of the investment deal. On the call, Tan said he and Huang have known each other for 30 years. "We thought it was going to be such an incredible investment," Huang said. Nvidia said it will collaborate with the chipmaker to create artificial intelligence systems for data centers that combine Intel's x86-based central processors with Nvidia's graphics processors and networking. Intel will also sell CPUs for PCs and notebooks that integrate Nvidia graphics processors, or GPUs. The transaction itself took a few months to come together, Intel's revenue chief Greg Ernst wrote in a LinkedIn post, adding that the agreement was reached on Saturday. The investment highlights how the fortunes of the two companies have switched atop Silicon Valley's pecking order as a result of the AI explosion ushered in by OpenAI's launch of ChatGPT in late 2022. Intel shares are down 31.78% in the last five years, while Nvidia shares are up 1,348% as of opening prices on Thursday. Nvidia is worth over $4.25 trillion, while Intel is only worth $143 billion.

RTX graphics on CPUs: Nvidia and Intel are officially joining forces

Nvidia is investing $5 billion into Intel and partnering to integrate RTX chiplets on consumer and AI processors. Nvidia is on top of the world right now, riding waves of investment in "AI" and becoming one of the most powerful and most profitable companies on the planet. Intel? Not so much. The company has been struggling in sales and performance for more than a year. So color me shocked when Nvidia and Intel announced a joint venture this morning that could be huge for both. Nvidia is investing $5 billion into Intel stock -- a comparatively small slice for both companies -- and approximately half of what the United States government invested in it after president Trump and other politicians demanded action on Intel's CEO. But the bigger news coming from the press release is that Nvidia and Intel will partner on new chips for both data centers and consumer PCs. The so-called "x86 RTX" chips will integrate Nvidia-designed graphics and AI chiplets into Intel CPUs. "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," said Nvidia CEO Jensen Huang. Nvidia has been unassailable on the discrete graphics card front for years, now commanding over 90 percent of sales for desktop add-in boards in an effective monopoly, and dominating both sales and discussion for anything related to graphics, gaming, and "AI" industrial processing. Its longtime rival AMD has struggled to hold onto what market share it had, slipping even as it reportedly sells every GPU it can make. Things are better for AMD on the CPU side, where it's gaining ground against Intel on the back of strong sales for laptop and desktop chips, especially its well-regarded X3D gaming series. Intel has been trying to enter the discrete graphics market for the last three years. But despite impressive gains in performance right out of the gate, the Arc series of desktop graphics cards has made barely a blip, falling to nearly zero percent market share. Exactly what will happen to Arc if Intel starts to co-brand Nvidia integrated graphics isn't quite known. Nvidia's meteoric rise to the top of both the chip market and the technology world has recently hit a highly visible snag, as reports indicate that the Chinese government is blocking purchases of its chips. The incredibly lucrative market was already showing some speed bumps as embargoes limit the performance of exported chips and China invests in domestic production to leverage its incredible energy and industrial infrastructure to compete with rivals like the United States and Taiwan. Intel and Nvidia will hold a joint press conference this afternoon, broadcast live on the web.

Nvidia's move into Intel systems through $5 billion deal called historic, with analysts pointing to competitive pressures on AMD

Biggest tech deal of the decade sparks debate over foundry future and rivals The recent announcement that Nvidia would invest $5 billion in Intel came as a shock for many across the technology industry. The deal will see the world's largest chip company buy a 4% stake in its long-struggling rival, while Intel committed to building custom x86 CPUs for Nvidia's AI infrastructure. The deal also includes plans for x86 system chips that combine Intel CPUs with Nvidia GPUs, hinting at the possibility of future data center x86 APUs. The surprise announcement had an immediate impact on the markets. Nvidia's value rose by around $150 billion on the news, more than Intel's entire capitalization. On paper, that amounted to a thirty-fold return on its $5 billion investment in less than 24 hours. Intel shares also spiked, marking their best day since 1987. For Nvidia, the investment provides equity in a rival while securing a roadmap to new classes of products. For Intel, it provides both capital and a badly needed vote of confidence in its ability to play a role in the AI era. But what did tech reporters and analysts make of the news? In its reporting, The Register framed the move as opening a new front for Nvidia, with Tobias Mann writing, "For Nvidia, the arrangement presents an opportunity to extend its GPU empire to the integrated graphics arena, a space historically dominated by Intel and AMD." Describing NVLink as key, Mann said that by integrating the interconnect tech into its CPU designs, "Nvidia will be able to offer NVL72 style systems based on both its in-house CPUs and Intel's Xeons, while also addressing a larger share of the PC graphics arena." Serve The Home's Patrick Kennedy touched on the data center angle, reporting that the companies, "say that 'Intel will build Nvidia-custom x86 CPUs that Nvidia will integrate into its AI infrastructure platforms and offer to the market.' That is certainly a net positive for Intel and likely a net negative for AMD. Nvidia has been pushing ahead with Arm architectures with chips like the Nvidia Grace, but now it has a clear x86 story." On PCs, Kennedy reported, "Intel will build and offer to the market x86 system-on-chips that integrate Nvidia RTX GPU chiplets." The Register cautioned that such progress "could mean bad news for Intel's in-house graphics division," given Arc's limited traction. Questions about Intel Foundry sit alongside the product plans. Writing for Yahoo Finance, Laura Bratton argued, "the investment does little to solve what is arguably Intel's biggest problem: how to fix its ailing contract chip manufacturing business," citing losses and a long road to cash generation. CNBC relayed Citi's skepticism that integrating Nvidia graphics will make Intel's CPUs more competitive against AMD, quoting analyst Christopher Danely, "We doubt this makes Intel CPUs more competitive as integrating another company's graphics wouldn't make a CPU more competitive given the processor is the main performance driver for a PC." Reuters' Stephen Nellis pointed to a possible, indirect manufacturing boost, writing that the partnership "could put the struggling chipmaker's next-generation manufacturing technology on a stronger footing," including confidence for the 14A process if joint products create volume. He added engineers will collaborate to "turn Nvidia's technology into a physical chip made at Intel." Analyst Jack Gold said, "It should be stated that while this arrangement is highly beneficial to both parties there are some losers. In particular AMD may be disadvantaged as a result of this partnership, although they are doing well with their own AI efforts in GPU and CPU. Still, having two major competitors combining their efforts is not exactly a positive outcome for AMD." Gold also suggested the deal could eventually extend to Intel manufacturing: "Any relationship with Nvidia at this point, while not explicitly talking about the foundry services, should be seen as a possible extension of the partnership in the future, and if it happens, would be a major win for Intel foundry services." Mobile World Live reported that during the conference call that followed the announcement, both Nvidia and Intel's CEOs faced numerous questions about Nvidia using Intel's foundry technology. Nvidia CEO Jensen Huang played things down, saying, "I think we would both say that TSMC is a world-class foundry. I just can't overstate the magic that is TSMC." The Economist tied the collaboration to Nvidia's broader strategy and to NVLink's role, writing, "This helps reinforce Nvidia's position as a partner of choice in the world of AI." The news site also quoted analysts at Futurum Group, which said, "The AI economy will run on systems where NVLink is the standard, and Nvidia decides who gets to plug in." eeNews Analog's Nick Flaherty sounded a note of caution for Intel, suggesting that the announcement "paves the way for Nvidia to buy the design business of struggling chip maker Intel." It linked the $5 billion equity stake to "a key negotiating position in any future negotiations," while acknowledging that process choices remain open and that both firms pointed to future product announcements rather than foundry commitments.

Chip giant Nvidia to take $5bn stake in Intel and collaborate on products

Deal gives Intel a lifeline as firms team up on AI data centers and PC chips after Trump stake sparks market surge Nvidia, the world's leading chipmaker, announced plans to invest $5bn in Intel and collaborate with the struggling semiconductor company on products. One month after the Trump administration confirmed it had taken a 10% stake in Intel - the latest extraordinary intervention by the White House in corporate America - Nvidia said it would team up with the firm to work on custom data centers that form the backbone of artificial intelligence (AI) infrastructure, as well as personal computer products. Shares in Intel surged 29% during pre-market trading in New York. Nvidia rose almost 3%, bolstering its $4tn market value. Nvidia said it will spend $5bn to buy Intel common stock at $23.28 a share. The investment is subject to regulatory approvals. "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. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." The two companies said they will work on "seamlessly connecting" their architectures. For data centers, Intel will make custom chips that Nvidia will use in its AI infrastructure platforms. while for PCs products, Intel will build chips that integrate Nvidia technology. The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the AI boom that's propelled Nvidia into the world's most valuable company. Intel lost nearly $19bn last year and another $3.7bn in the first six months of this year, and expects to slash its workforce by a quarter by the end of 2025. Nvidia, meanwhile, has soared because its specialized chips are underpinning the artificial intelligence boom. The chips, known as graphics processing units, or GPUs, are highly effective at developing powerful AI systems. Dan Ives, tech analyst at Wedbush, said: "With AI infrastructure investments continuing to grow with the company expecting between $3tn to $4tn in total AI infrastructure spend by the end of the decade, the chip landscape remains [Nvidia's] world, with everybody else paying rent, as more sovereigns and enterprises wait in line for the most advanced chips in the world."

Intel-Nvidia pact fuses x86 and RTX, bolstering Tan's turnaround strategy

Intel and Nvidia have struck a landmark deal, with Nvidia investing US$5 billion for about 4% of Intel. The two will co-develop SoCs integrating Intel's x86 CPUs and Nvidia's RTX GPUs, linked through NVLink. Analysts see the move as a pivotal boost for Intel CEO Lip-Bu Tan's turnaround plan and a possible reshaping of the global semiconductor landscape. Reuters and Wccftech note the alliance reinforces Intel's CPU leadership while paving the way for Nvidia's AI PC ambitions. By combining strengths, the firms aim to meet soaring AI compute demand. Tan highlighted that Intel's x86 ecosystem, advanced process, packaging, and data center platforms complement Nvidia's AI and accelerated-computing edge, driving fresh innovation. Product synergies, process roadmap, and financial backing Though dominant in x86, Intel has faced rising competition from AMD and Arm designs. Analysts say the Nvidia tie-up reinvigorates Tan's three-pronged strategy. First, it broadens Intel's portfolio by pairing its CPUs with Nvidia GPUs in high-performance SoCs, strengthening its PC and data center reach. Second, the pact could revive Intel's uncertain 14A process. While not formally a foundry deal, engineers from both sides will co-design, with Intel Foundry likely handling part of the manufacturing and packaging. Strong market uptake could validate 14A, boost its commercial viability, and strengthen Intel's manufacturing arm. Third, Intel secures vital funding: US$8.9 billion from the Trump administration, US$2 billion from SoftBank, and now US$5 billion from Nvidia, about US$16 billion in total. The infusion strengthens Intel's balance sheet and backs product R&D, process development, and fab construction. For Nvidia, the tie-up unlocks the vast x86 ecosystem -- enterprise clients and software infrastructure -- while complementing its AI PC projects with Arm and MediaTek. Shaking up the semiconductor market order The alliance heightens pressure on rivals, with analysts warning AMD faces dual competition in CPUs and GPUs that could erode its market share and edge. Arm's outlook is less certain as Nvidia moves beyond Arm-based AI CPUs to add x86, potentially fragmenting the market. Still, industry watchers expect Nvidia to keep dual product lines and use NVLink to balance performance and compatibility, creating a win-win setup. Nvidia, still reliant on TSMC, may shift some wafer orders to Intel to diversify supply risk, introducing potential competition for TSMC. Washington is expected to back the alliance as it aligns with the US onshoring goals. The Trump administration's US$8.9 billion in Intel underscores the supply-chain priority, though there's no sign of direct involvement in the Nvidia-Intel deal. Overall, the deal is viewed as a strategic win for Intel, bolstering its AI and HPC ambitions and giving new life to its 14A roadmap. It also reshapes the global semiconductor order, setting up major shifts in the years ahead. Article edited by Joseph Chen

Nvidia's $5 billion stake puts Intel back in the game

For years, Intel has been Silicon Valley's saddest Greek chorus -- chanting about its turnaround while the plot moved on without it. Earnings calls sounded like therapy sessions, new slogans flashed and fizzled, and each five-point plan felt more like a confessional than a strategy. Wall Street politely yawned, AMD ate its lunch, and the once-defining name in chips became a trivia answer: What does the "silicon" in Silicon Valley even stand for? Then, Thursday morning, Jensen Huang scribbled a number -- $5 billion -- on a check, and the chorus went quiet. Nvidia, the trillion-dollar ringmaster of the AI boom, said it would buy a roughly 4% stake in Intel and co-develop chips for data centers and PCs. All of a sudden, Intel is looking less like a punchline. It was the day's main character, soaring around 30% in a single session -- its biggest pop since shoulder pads were still trendy. The tape did the rest. By about 2 p.m. ET, Nvidia drifted higher (3.5%), AMD sulked in the red (down around 2%), and indexes were catching a lift on the back of one sentence: The hottest company in the market is standing next to the coldest one and saying, "Yes, we're building together." You don't need a ship date to trade that. You need a cameo in Nvidia's roadmap -- and Intel just got one. If you wanted proof that stories move faster than silicon, there it was: credibility by association, priced in real time. Traders didn't need a white paper; they had a headline and a price. The companies say they'll co-develop "multiple generations" of products: Intel will build Nvidia-custom x86 CPUs to slot into Nvidia's AI infrastructure, and it will make PC system-on-chips that weld Intel cores to RTX GPU chiplets, with NVLink as the high-speed handshake between them. Missing on purpose was any promise to move Nvidia's crown-jewel GPU manufacturing away from TSMC or to put wafers on Intel lines. This is architecture and alignment, not a foundry flip -- a way to make the world's most entrenched compute base feel natively wired into Nvidia's world. Investors re-rated Intel on headlines, not nodes. The move gave portfolio managers what they needed -- a clean reason to add a name that has spent years testing their patience -- and the companies did so without over-promising on timelines. That may sound soft, but in an AI market where capacity is pre-sold years ahead and procurement officers are starved for certainty, believable adjacency to Nvidia is its own kind of currency. Underneath the price action is a quieter shift in power. The center of gravity is moving from the chip to the connections between chips -- the fabric, the interconnect, the way the system breathes under load. If the glue becomes the product, and the product is designed to make Nvidia's accelerators feel like the default endpoint for AI work, then every decision up-stack and down-stack starts to favor the platform that owns the glue. "AI is driving a reinvention of every layer of the computing stack," Huang said in a press conference Thursday afternoon to discuss the news, which he called a "historic partnership" and a "great business opportunity" for both companies. Huang said the three architecture teams -- working across the CPU architecture, as well as product lines for servers and PCs -- have been developing this "fairly extensive" architecture for over a year. He added, "Today, we're taking the next great step." On the conference call, Huang and Tan leaned hard on the adjectives -- "historic" and "exciting" were repeated like mantras. For Wall Street, though, the only adjective that mattered was "buy." You could feel how unthinkable this pairing once was by the way the Street talked about it. "This is truly like the Yankees and the Red Sox coming together to end their rivalry -- the companies did not like each other whatsoever," said David Wagner, head of equity and a portfolio manager at Aptus Capital Advisors. "[Using Intel's fabs to make chips is] a massive step in the right direction for U.S. chip designers and breathes new life into a poorly run company for decades." Wedbush's Dan Ives called the move a "game changer" that puts Intel "front and center into the AI game" -- language designed to travel from sell-side blasts into buy-side position notes. Brian Mulberry, a senior portfolio manager at Zacks Investment Management, pushed beyond the headline toward the operating reality: Collaborating with Nvidia makes Intel's primary products better and more competitive in the PC universe, and over the next five years, it gives Nvidia a cleaner way to diversify revenue beyond a handful of hyperscalers. Tan said that one of his top-10 priorities is to "strengthen my balance sheets," and a $5 billion vote of confidence from Nvidia isn't a bad start. Huang, for his part, said that Nvidia is "delighted" to be a shareholder and that "the return on [this] investment is going to be fantastic" both in terms of Nvidia's business and in its equity share of Intel. Strip away the corporate spin, though, and the story is the same one analysts kept hammering: The $5 billion is less about cash and more about clout. The psychology is doing as much work as the physics. Enterprises that want AI without rewriting their entire x86 lives just saw the easiest path to "yes": Nvidia performance with Intel compatibility. If Nvidia sells a cleaner path, some buyers will take it, and suddenly EPYC's "of course" becomes "it depends." Qualcomm's PC ambitions have to reckon with an RTX-blessed route to "good enough" local AI. And TSMC, while still the keystone for Blackwell-class GPUs, now watches a plausible U.S. alternative inch from theoretical to probable -- contingent on Intel execution and political will. Enter Nvidia -- not as the conquering acquirer, not as the white-label tenant of Intel's fabs, but as the star co-signing the project. The optics do real work. For Washington, it turns a politically fraught bailout into a coalition: taxpayers plus the hottest company in the markets pointing in the same direction. For regulators circling the AI stack, it makes the dominant player look like an ecosystem builder rather than a monopolist -- distributing the spotlight while keeping a firm grip on the standard. For Intel, it converts policy into purchase orders by translating a national story into a boardroom-safe procurement story. Kevin Hassett, the Trump administration's economic point man, has already mused in public that the Intel stake could be a template for other strategic sectors. Nvidia's check makes that pitch easier. If Wall Street's favorite stock is in, the plan looks less like state capitalism and more like a joint venture. And while the partnership stops short of moving wafers to Ohio, it buys political oxygen that matters just as much right now: a visible, defensible path to domestic credibility without pretending Taiwan no longer exists. Huang said in the press conference that the "Trump administration had no involvement in this partnership at all" but added that he thinks Washington would have been "very supportive, of course." The Nvidia CEO said he told Commerce Secretary Howard Lutnick about the partnership today, and he was "very excited, very supportive of seeing American technology companies working together." TSMC sits in a different kind of suspense. Nothing about this round touches the jewel box in Hsinchu; Blackwell and NVSwitch stay where they are. Yet if Intel can execute, and if politics keep tugging at the map, it's no longer heresy to imagine a future where some Nvidia work is made on U.S. soil. That's not a threat to today. It's leverage for tomorrow. And that's why analysts kept circling back to the same theme: that the partnership might not kill rivals outright, but it changes the game they have to play Mulberry said this partnership "will mean the likes of AMD, TSMC, and Qualcomm will need to step up to maintain their market share." He also said the deal could even help offset recent China-related revenue hits without being a one-for-one response to export rules. (To help get around that, Nvidia and AMD recently promised the U.S. government 15% of all China sales.) This is also Nvidia hedging the risk that comes with selling out every GPU to the same short list of customers. IG's Chris Beauchamp praised the optics for Intel even as he cautioned that today's announcement doesn't solve Nvidia's headaches over China -- basically, this is a step, not a miracle. None of this erases the work. Intel still has to, well, be Intel -- design better, ship faster, slip less. The foundry business still lacks a marquee external customer willing to bet a flagship design on U.S. soil, and Nvidia did not volunteer to be first. The PC renaissance has been promised so many times that it should have frequent-flyer status. Export rules won't untangle themselves because two CEOs shook hands. But that list is exactly why the deal landed. Nvidia didn't pretend to fix the hard parts. It changed the incentives around them. A credible seat next to the king is worth something to investors who have been dying to believe Intel's turnaround is more than a mood. It's worth something to cabinet officials who want to say out loud that America can build its future at home. It's worth something to buyers who have watched the AI hype cycle burn through slide decks without delivering stable capacity. The scoreboard will be written in calendars and contracts. Intel needs named design wins, ship windows you can say out loud, and early proofs that bookings and backlog are inching the right way because of this tie-up. Nvidia needs to show that broadening the tent doesn't fray the edges of the "it just works" aura that keeps customers paying. Washington needs ribbon cuttings to become steel, silicon, and power. Everyone involved knows the difference between a stock pop and a comeback. Thursday was the former. The work decides the latter. And yet the day mattered. Markets are fluent in narrative. They know when the lead character has been recast and when the production finally found its director. One check and one partnership didn't fix Intel's factories, but they did something just as consequential in the short run: They made Intel useful again to the three audiences that decide who gets funded and who gets ignored -- investors, customers, and the U.S. government. So yes, this was a stock deal dressed like a strategy. It was also a strategy dressed like a stock deal. Nvidia didn't just buy shares; it bought Intel time, credibility, and a role that makes sense in America's AI playbook under Trump. Intel didn't sell its soul; it sold the thing it needed most -- a believable path back into racks that are already spoken for. Intel, the company Washington had to prop up with a 10% government stake last month, just got an endorsement from the one name investors still trust to define the future. Nvidia didn't just buy stock. It bought Intel a new narrative, and in the markets, narrative is oxygen.

Chip-maker Nvidia to invest $5 bn in Intel

US chip giant Nvidia will invest $5 billion in semiconductor maker Intel for joint development projects, the companies said in a statement Thursday. Under the accord the two companies said they will develop custom data center and PC products, as the artificial intelligence boom fuels intense demand for high-performance chips like those made by Nvidia. Nvidia's chips known as GPUs are in hot demand from tech giants building data centers for artificial intelligence applications. Nvidia founder and CEO Jensen Huang said in Thursday's statement that the deal marks "a fusion of two world-class platforms. Together, we will expand our ecosystems and lay the foundation for the next era of computing." The statement said Nvidia will invest $5 billion in Intel common stock at a purchase price of $23.28 per share. The investment is subject to closing conditions, including required regulatory approvals, according to the two companies.

Intel shares surge 30% as Nvidia announces $5 billion investment in America's one-time chips champion | Fortune

Nvidia has announced an unprecedented $5 billion investment in Intel, signaling a strategic pivot in the global chip industry and marking a lifeline for the once-dominant but recently embattled U.S. chipmaker. This move comes soon after a whirlwind of corporate and political drama involving Intel, America's one-time semiconductor chips champion, that saw President Trump call for the resignation of CEO Lip-Bu Tan, his sudden reversal, and then the U.S. government itself making an unprecedented investment into Intel, taking a nearly 10% stake in the process. Nvidia, the world's leader in artificial intelligence chips, announced it will invest $5 billion in Intel's common stock at a discounted price of $23.28 per share. The news prompted a premarket surge in Intel shares of a whopping 30%. Nvidia CEO Jensen Huang hailed the deal as a "historic collaboration" that will tightly couple Nvidia's AI and accelerated computing stack with Intel's central processing units (CPUs) and its x86 ecosystem. Specifically, Intel will build and bring to market x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets. "AI is powering a new industrial revolution and reinventing every layer of the computing stack -- from silicon to systems to software. At the heart of this reinvention is NVIDIA's CUDA architecture," Huang said in the press release on the announcement. Together, he added, the companies will expand their ecosystems and "lay the foundation for the next era of computing." "Intel's x86 architecture has been foundational to modern computing for decades -- and we are innovating across our portfolio to enable the workloads of the future," said Lip-Bu Tan in the same release. He added that Intel's data center and client computing platforms, and its process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA's "AI and accelerated computing leadership to enable new breakthroughs for the industry." The partnership follows a dramatic series of events that began in August, when President Trump, via Truth Social, publicly demanded the Lip-Bu Tan's resignation. Trump called Tan "highly conflicted," citing reported ties to Chinese tech interests and mounting national security concerns raised by lawmakers and the media, specifically reporting in the Financial Times and Reuters and a strongly worded letter from Sen. Tom Cotton. Tan, previously at Cadence Design and a respected figure in Silicon Valley, rebuffed the demands, asserting his commitment to the "highest legal and ethical standards," but did not confirm divestiture from the flagged firms. Just days later, Trump reversed course during a White House meeting, praising Tan's "amazing story" and inviting him for further cabinet-level discussions. The shift followed bipartisan calls to strengthen America's semiconductor industry amid rising technological competition with China -- a sentiment that foreshadowed the federal government's own historic actions. Four former Intel directors had written a commentary for Fortune shortly before this drama ensued, expressing a lack of faith in current leadership, including Lip-Bu Tan. Fortune's Geoff Colvin reported that Intel has been widely understood to have fallen into a 20-year decline. Nvidia -- the most valuable company in the world with a market cap over $4 trillion -- slightly disappointed markets in its last earnings report as sales of chips in China were missing compared to previous quarters. The backdrop, as reported by Fortune's Nicholas Gordon, is that China is racing to essentially create its own version of Nvidia. Since 2022, Nvidia has been barred from selling its most advanced chips to Chinese companies, and it's attempted to work around that with new chip designs that can be sold, but that has also been tough sledding. Washington is tightening its export controls, and Nvidia is designing new products to comply, but pressure from Beijing remains, with a finding this month that Nvidia violated Chinese antitrust laws. Nvidia warned in its earnings that it "may be unable to create a competitive product for China's data center market that receives approval from the [U.S.] government." The alliance between Nvidia and Intel, then, reflects a focus on strengthening America's chips champions. Nvidia and Intel declined to comment beyond the press release announcing the investment. The companies will be holding a press conference at 10 am PST.

Intel Spikes 23% on Deal With Nvidia to Develop AI Hardware - Decrypt

The move followed reports that China banned local tech firms from buying Nvidia AI chips. Nvidia announced Thursday it would invest $5 billion in Intel and collaborate on custom chips for data centers and personal computers, sending Intel's battered stock soaring 23% in early trading. The investment, which would buy Nvidia roughly 215 million Intel shares at $23.28 each, comes just weeks after the Trump administration took a 10% stake in the struggling chipmaker. As per the agreement, Intel will develop custom x86 CPUs optimized for Nvidia's AI platforms, potentially solving longstanding bottlenecks in CPU-GPU communication. For personal computers, Intel will build system-on-chip designs incorporating Nvidia's RTX graphics technology. "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 announcement. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." Nvidia shares climbed 3%, pushing the company's market value past $4 trillion, giving the company a breath of fresh air after the quick panic caused by a decision from China to ban its chips. The deal throws Intel a lifeline at a critical moment. The company that once dominated Silicon Valley lost nearly $19 billion last year and another $3.7 billion in the first half of 2025. It plans to cut 25% of its workforce by year's end However, this is not just a lifeline, and the partnership is actually mutually beneficial. For Nvidia, it means deeper access to the x86 architecture that still powers most enterprise systems. For Intel, it's a chance to leverage Nvidia's AI dominance to stay relevant. By teaming up, Intel can use Nvidia's powerful AI technology in its own computer chips. This means businesses and regular people will get faster, "smarter" computers from Intel, all thanks to Nvidia's know-how, keeping Intel a major player even as technology rapidly change "Pop the champagne," Dan Ives, tech analyst at Wedbush Securities, told Bloomberg. "It brings Intel into the AI game. This is also gonna viewed very positively in DC" he said The Trump administration's earlier intervention had already signaled Intel's strategic importance. The government's $8.9 billion investment for a 10% stake was part of broader efforts to secure domestic chip production amid tensions with China. Trump has threatened 100% tariffs on imported chips while negotiating export deals that let Nvidia and AMD sell lower-power AI chips to China in exchange for a 15% cut of sales. Trump's efforts to limit the exports of good chips to China and only give licenses to sell nerfed chips finally ended up in a decision from China to ban the use of Nvidia chips (good or bad) and promote the use of domestic alternatives. Intel CEO Lip-Bu Tan, who took over in March 2025 with a mandate to restore the company's manufacturing edge, framed the Nvidia partnership as validation of Intel's core strengths. "Intel's leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA's AI and accelerated computing leadership to enable new breakthroughs for the industry," he said in the official announcement. Market watchers see the deal as confirmation of Nvidia's position atop the chip industry. The company reported $46.7 billion in quarterly revenue in Q2 2025, up 56% from a year earlier. "With AI infrastructure investments continuing to grow with the company expecting between $3 trillion to $4 trillion in total AI infrastructure spend by the end of the decade, the chip landscape remains [Nvidia's] world, with everybody else paying rent," Ives wrote in a client note according to The Guardian. The partnership puts pressure on AMD, which now faces a combined Intel-Nvidia force in both AI and PC markets. It also reinforces the push to build American chip capacity as global supply chains remain fragile. The deal requires regulatory approval. Neither company disclosed a timeline for when the first jointly developed products would reach the market.

Jensen Huang says Intel and Nvidia 'have been discussing and architecting solutions now for coming up to a year' and 'kept it really quiet'

It's not too often that I get a complete 'out of the blue' surprise in PC hardware land, but the recent announcement of an Intel-Nvidia partnership certainly fits that bill. And it's even more surprising to discover the two companies, which will now be working together on both datacentre and consumer systems, have been working towards this for a while, keeping it quiet. During a press conference yesterday, Nvidia CEO Jensen Huang explained: "The two technology teams have been discussing and architecting solutions now for probably coming up to a year, and the two architecture teams -- well, it's three architecture teams -- are working across, of course, the CPU architecture, as well as product lines for server and PCs." Why did we not know about these teams working together for the past few months? Simple, they kept schtum: "There were no communications with anybody else, except between [Intel CEO] Lip-Bu, myself, and the technical teams that were working on this partnership, and we kept it really quiet." The partnership involves a $5 billion buy-in from Nvidia, and is expected to centre mostly around AI but we're hoping there's at least a smidge of gaming goodness to come from it. Intel processors are going to be NVLink'd upto Nvidia GPUs in datacentres, and in the consumer market we can expect what is sure to initially seem like Frankenstein's monster chips melding Intel and Nvidia chips into single system-on-chips (SoCs). I'm sure we'll get used to that, though. While Nvidia is sure to get something out of all this -- namely, even more foothold in the datacentre market, more pressure on AMD, and more presence in the laptop market -- Intel arguably has a lot more to gain. Huang certainly sees much in it for Chipzilla (can we call Intel that, anymore?): "You know, obviously, it's a very substantial partnership. This is going to expand the market opportunity for Intel in AI infrastructure that is largely unexposed to them today, and it's going to expose to Intel in the consumer notebook market, where really exquisite GPUs are necessary. And so these two markets are unexposed to Intel today, and it's going to be brand new growth markets for Intel." That is of course not to mention all the Intel shares Nvidia has just bought up. We're not expecting to see any Intel-Nvidia SoCs in the near future, but in three or four years, the chip landscape might start to seem very different. It could certainly open the door to a big enough change that I can appreciate the left-field announcement after months of secrecy.

Nvidia invests $5 billion in Intel to develop AI infrastructure

Intel will design and manufacture custom data centres and personal computing products hand in hand with the world's most valuable public company. Nvidia, the world's leading chipmaker, announced on Thursday that it's investing $5 billion (€4.23bn) in Intel and it will collaborate with the struggling semiconductor company on products. The two firms will team up to work on custom data centres that form the backbone of artificial intelligence infrastructure, as well as personal computer products, Nvidia said in a press release. Nvidia said it will spend $5bn to buy Intel common stock at $23.28 a share. The investment is subject to regulatory approvals. "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. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." The two companies said they will work on "seamlessly connecting" their architectures. For data centres, Intel will make custom chips that Nvidia will use in its AI infrastructure platforms. For PC products, Intel will build chips that integrate Nvidia technology. The agreement provides a lifeline for Intel, a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom. The company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even further behind in recent years amid the artificial intelligence boom that has propelled Nvidia to become the world's most valuable company. In premarket trading, Intel shares soared 30%, while Nvidia shares rose almost 3%.

Nvidia to invest $5B in Intel and develop chips with onetime rival

Nvidia CEO Jensen Huang at the GTC AI Conference in San Jose, California, on March 18.Josh Edelson / AFP via Getty Images Nvidia, the semiconductor company powering the artificial intelligence revolution, said Thursday that it was buying a $5 billion stake in ailing rival Intel. The two companies will also begin a partnership to develop chips together for PCs and data centers. Intel shares surged more than 30% in pre-market trading on the announcement. Nvidia shares advanced about 3%. The announcement Thursday from Nvidia comes just weeks after the U.S. government purchased a 10% stake in Intel, worth nearly $9 billion, and after Japan's SoftBank invested $2 billion. "This is a game changer deal for Intel as it now brings them front and center into the AI game," wrote tech analyst Dan Ives in a note Thursday. "Along with the recent U.S. Government investment for 10% this has been a golden few weeks for Intel after years of pain and frustration for investors." "Today's announcement further strengthens the US lead in the AI Arms Race against China as Intel now goes from a laggard to a catalyst," Ives concluded. It is highly unusual for the U.S. government to hold positions in private companies outside of major financial crises. But Intel has been struggling in recent years with multiple CEO changes and strategy shifts as the firm fell far behind Nvidia and other rivals such as AMD and Broadcom in the mobile phone space and AI arms-race. Intel CEO Lip-Bu Tan, named in March, faced a call from President Donald Trump in August to resign. Trump said Tan was "highly conflicted" after Sen. Tom Cotton, R-Ark., sent a letter to the company expressing "concerns" about Tan's past work for Chinese firms. "There is no other solution to this problem," Trump added in the social media post. Days later, Tan and Intel management met with Trump in the Oval Office. Trump's tone toward Tan changed dramatically after that encounter. "The meeting was a very interesting one. His success and rise is an amazing story," Trump wrote in a Truth Social post. A week later, the administration and Intel announced the unprecedented investment in the company, using money from the Biden-era CHIPS Act. At the same time, Nvidia CEO Jensen Huang has been a familiar face at Trump administration events. On Wednesday night, Huang attended the state dinner at Windsor Castle alongside Trump and King Charles III. As part of Trump's visit to the U.K., Nvidia announced it was plowing more than $14 billion into AI and data center infrastructure around the country. At a news conference Thursday alongside U.K. Prime Minister Kier Starmer, Trump gave Huang a shoutout: "You're taking over the world, Jensen."

Nvidia announces $5 billion investment in Intel along with collaboration

Nvidia, the world's leading chipmaker, announced on Thursday that it's investing $5 billion in Intel and will collaborate with the struggling semiconductor company. The two companies will team up to work on custom data centers that form the backbone of artificial intelligence infrastructure as well as personal computer products, Nvidia said in a press release. Nvidia said it will spend $5 billion to buy Intel common stock at $23.28 a share. The investment, which is subject to regulatory approvals, comes a month after the U.S. government took a 10% stake in Intel. "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. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." The two companies said they will work on "seamlessly connecting" their architectures. In morning trading, Intel shares jumped 25%, its biggest one-day percentage gain in decades. Nvidia shares added 2%. For data centers, Intel will make custom chips that Nvidia will use in its AI infrastructure platforms. While for PC products, Intel will build chips that integrate Nvidia technology. The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that's propelled Nvidia into the world's most valuable company. Intel lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, and expects to slash its workforce by a quarter by the end of 2025. The U.S. government stepped in last month to secure a 10% stake, making it one of Intel's biggest shareholders. Federal officials said they invested in Intel in order to bolster U.S. technology and domestic manufacturing. The deal is "bullish for U.S. tech," Wedbush Securities analyst Daniel Ives said in a client note. "This is a game-changer deal for Intel as it now brings them front and center into the AI game," Ives said. "Along with the recent U.S. government investment for 10% (equity stake in Intel) this has been a golden few weeks for Intel after years of pain and frustration for investors." Nvidia, meanwhile, has soared because its specialized chips are underpinning the artificial intelligence boom. The chips, known as graphics processing units, or GPUs, are highly effective at developing powerful AI systems. The deal between the two chipmakers comes as China moves to be less dependent on U.S. semiconductor technology. This week, Chinese officials reportedly forbade several large domestic technology companies from purchasing Nvidia chips, and Huawei announced that it was expanding its development of AI chips and manufacturing. While Nvidia and Intel will work together to develop new chips, a manufacturing deal has yet to be struck between the two. The potential access to Intel's chip foundries by Nvidia poses a risk to Taiwan Semiconductor Manufacturing Company, which currently manufactures the tech giant's flagship processors.

Nvidia gained $150 billion after Intel collaboration announcement, 30 times the size of its $5 billion stake

To put things in context, that gain is larger than Intel's entire market capitalization. Nvidia's value climbed from about $4.13 trillion on September 17 to $4.28 trillion a day later. The surge in Nvidia's market value was around 30 times the size of its $5 billion investment in Intel stock (at $23.28 per share). The sharp rise reflected investor confidence in the deal, which will see Intel build custom x86 CPUs for Nvidia's data center platforms, while also producing chips that combine Intel processors with Nvidia RTX GPU chiplets for PCs. As reported by Tom's Hardware, Nvidia chief executive Jensen Huang said during a joint press conference with Intel the collaboration had been under discussion for a while. "The two technology teams have been discussing and architecting solutions now for probably coming out to a year," he said. "The two architecture teams... Well, it is three architecture teams are working across... the CPU architecture, as well as product lines for server and PCs. The architecture work is fairly extensive, and the teams are really excited about the new architecture. The teams have been working for a while and we are excited about the announcement today." Huang dismissed suggestions that politics influenced the partnership. "The Trump administration had had no involvement in this partnership at all," he said, before adding, "They would have been very supportive, of course. Today I had the opportunity to tell Secretary [of Commerce Howard] Lutnick and he was very excited and very supportive of seeing two American technology companies working together." Huang also pointed to the scale of potential consumer demand. "Just the notebook market is 150 million notebooks sold each year," he said. "So that kind of gives you a sense of the scale of the work that we are going to do here. We are going to address the consumer market, we are going to address a vast majority of that consumer PC market, consumer PC notebook market." The partnership spans data center CPUs customized for Nvidia's AI workloads and client processors pairing Intel's x86 design with Nvidia RTX GPUs. Although the products the two firms will be working on are not expected to arrive for several years, the collaboration is already being seen as a huge win for Intel, which has had its share of issues over the past few years, and a turning point in how both companies approach AI and consumer computing.

Intel-Nvidia: The baton passes to the CUDA era - SiliconANGLE

In our view, the Intel-Nvidia pact further accentuates Nvidia Corp.'s dominant market position and represents a milestone in the transition to the next era of computing. Just as Intel Corp. had a lock on the market in the '80s and '90s, Nvidia has now extended its moat deep into the x86 ecosystem (in both PCs and data center) and expanded its total available market by $500 billion, according to our estimates. The subtext here is that Intel Chief Executive Lip-Bu Tan is taking necessary steps to save Intel. In doing so, he's hitching the company's wagon to the future, which is being defined by CUDA, Nvidia's programming model and platform. This move, by our estimates, also increases Intel's TAM, by roughly $100 billion, and breathes new life into the x86 franchise, which was rapidly deteriorating. Our economic models suggest that Intel foundry remains a significant drag on its turnaround but it will get a much needed boost from the system-on-chip products that this partnership will produce. On balance, we see this as a win for both companies and x86 customers and a further tailwind for artificial intelligence's momentum. In this Breaking Analysis, we review the salient deal points, forecast the economic impact of the partnership in both the PC and data center sectors and break down the strategic implications for Intel, Nvidia, Advanced Micro Devices Inc., Arm Ltd. and the hyperscalers, and we'll close with what to watch going forward. We'll start with a look back and what we said in June of this year. In a research note titled Inside Intel's Bid to Rewire Its Destiny, we suggested that Intel should partner with Nvidia - basically hitch its wagon to CUDA - and lean into adopting Nvidia's standards. Though we didn't expect this investment by Nvidia, it directionally aligns with what happened this week -- although the two companies took it much further to include data center opportunities, which we'll assess in this research piece. A key to this deal is the hybrid x86-CUDA stack which we'll dig into in this post. We believe the Intel-Nvidia pact should be understood as a systems bet, not a point-product tie-up. The companies are effectively standardizing on a CUDA-first, x86-compatible architecture that spans rack-scale AI in the data center and integrated graphics in client devices. By anchoring the design to NVLink, advanced packaging and chiplets, the partnership moves competition from individual components to tightly coupled central-processing unit-graphics processing unit subsystems where software stickiness (CUDA) and integration economics are key. In our opinion, though the equity component is helpful for Intel, it also signals a commitment to align roadmaps to reduce the risk that this becomes a short-lived OEM arrangement. Our analysis indicates the near-term value is twofold. First, it gives Nvidia a large, stable x86 partner for heterogeneous systems where CPU proximity and memory semantics matter, while preserving TSMC as the likely manufacturing source for leading dies. Second, it gives Intel a credible path to participate in accelerated computing demand - both in the rack and in AI PCs - without having to own the full GPU software stack. If executed, Intel's SoC assembly that incorporates Nvidia GPU chiplets could increase unit throughput for Intel's manufacturing business and create a repeatable pattern for x86-centric enterprises that want CUDA without ripping and replacing existing software and hardware estates. We see the following implications for enterprise architects and investors: The bottom line in our view is this agreement formalizes the baton pass from x86-only designs to CUDA-centric systems, with Intel leveraging packaging and scale to stay in the race and Nvidia extending its moat by making x86 a first-class citizen on its fabric. As well, it gives Nvidia an x86-to-CUDA bridge into enterprise AI, the projected tranche beyond AI for hyperscalers and neoclouds. The chart below shows the arc of the x86's history and the its massive ascendancy in both client (blue) and data center (brown). And you can see the upward trajectory in the '80s and '90s and then the peak in the COVID era, followed by a rapid decline. Note that PC revenue peaked in the early part of last decade, which was the canary in the coal mine for Intel. COVID provided a "dead cat bounce" for x86 PCs but volume has since decelerated. As we've reported ad nauseam, the loss of volume leadership goes to the heart of Intel's foundry troubles. Regardless, we had that TAM pegged last year at $55 billion. The companies indicated it was a $25 billion to $50 billion market opportunity. Our data below includes total spend, which includes the revenue from the likes of Dell Technologies Inc., HP Inc., Hewlett Packard Enterprise Co., Super Micro Computers Inc. and so on. So in that sense it aligns with company statements. But we think there's much more to the opportunity, which we explain later. We believe the more important story behind the x86 TAM isn't the historical arc -- it's the new access model. Nvidia now has a clearer onramp to the x86 installed base -- both in racks and in clients -- by making CUDA a first-class citizen on custom Intel CPUs and co-developed SoCs. In our view, the companies' $25 billion to $50B opportunity range maps reasonably to the post-COVID-reset market size shown above, with the mix shifting toward accelerated, CUDA-addressable systems rather than stand-alone CPUs. But the TAM is much larger in our view. The following two points underscore our assumptions that lead to our forecast of a $500 billion to $1 trillion and a $100 billion TAM expansion for Nvidia and Intel, respectively: Bottom line: We see this agreement converting a declining x86 market into a CUDA-expandable one. If execution holds, x86 stops being a managed-decline business and becomes a distribution channel for Nvidia's platform while restoring relevance for Intel through SoC integration, a hybrid bridge to enterprise AI and volume manufacturing for Intel and TSMC. We believe the data center story here is not only about the massive absolute dollars but also the mix shift. The slide below accentuates the dominant trend -- that "AI Extreme" (accelerated/parallel) workloads overtake traditional x86 processing and compound through the decade. The data clearly indicates this is the demand vector Nvidia has already turned in its favor. Today the buildout is concentrated in hyperscaler CapEx while enterprises are still testing the water. The Intel partnership creates a practical on-ramp in the form of a CUDA-first stack that remains x86-compatible, minimizing code migration risk and letting general-purpose estates step into acceleration without an Arm rewrite. In our view, that bridge will unlock software gravity with operational familiarity. Key takeaway: Our research indicates Nvidia keeps its platform advantage as "AI Extreme" becomes the default, while Intel gains relevance by turning x86 into a first-class transport for CUDA. The result is a faster enterprise ramp - beyond hyperscalers and neoclouds - without forcing a wholesale architectural migration. We believe the latest earnings prints from Intel and NVIDAI crystallize the transition visible in the market data. Nvidia now generates roughly 10X Intel's data center revenue and about 4X total revenue, while Intel's relative strength sits in consumer PCs -- a profit pool that the joint SoC plan explicitly targets. In our view, this is the practical end of Intel's x86-era monopoly, with value is accruing to accelerated systems and the software that makes them productive. Without a platform pivot, Intel's multi-year revenue decline (roughly down mid- to single-digits) would have constrained its ability to sustain a leading-edge foundry. Partnering with Nvidia gives Intel a somewhat viable path to volume and relevance in the very segment that is expanding fastest, while giving Nvidia access to x86 distribution where PCs and enterprise estates remain entrenched. Though we remain skeptical of Intel's ability to become viable leading-edge alternative to TSMC, this partnership is the first positive sign we've seen in years. Bottom line: Our research indicates the SoC roadmap is the key factor for the pc market. If the companies can execute to plan, Nvidia can translate data center leadership into client market share while navigating the bridge of x86 compatibility. We believe the road ahead shows a stark reality. Nvidia is already more than twice Intel and AMD combined on 2025 revenue run-rate, and this deal tilts the next leg of growth further toward CUDA-centered systems. Our research indicates Intel's opportunity expands by roughly $100 billion in the forecast period but is less about reclaiming GPU leadership and more about stabilizing client/datacenter share through x86-CUDA SoCs and somewhat higher foundry throughput. Nvidia's upside is an order of magnitude larger -- a platform TAM expansion that could surpass $500 billion and approach $1 trillion as accelerated systems become the default footprint in both clouds and enterprises. AMD, by contrast, is boxed in in our scenario. It will likely keep taking CPU share near-term as the market transitions, but its risk profile increases after 2027 if it cannot secure a durable position in the CUDA wave. In our view, a CUDA licensing path for AMD is both strategically rational for Nvidia (introducing a credible second source that moderates Intel's chiplet pricing power) and politically pragmatic given historical antitrust precedents that pushed IBM, Microsoft, and Intel to open interfaces and preserve competition. The following additional points are noteworthy: Key takeaway: The center of gravity moves to CUDA hybrids. Intel regains relevance through packaging and volume; Nvidia compounds platform economics; AMD must either plug into CUDA or risk brisk headwinds in our forecast scenario. We believe this deal gives Intel something it hasn't had in years - a credible narrative in accelerated computing that resonates with developers and enterprise information technology. The immediate cash infusion helps, but the strategic implication is access to CUDA at both ends of the stack - PCs and the data center. That access restores relevance with the people who actually determine workload investments. If Intel executes on x86-CUDA SoCs and rack-scale integration, unit volumes can stabilize in client and rise in server packages, even if leading-edge die work remains with TSMC. We remain cautious on the foundry turnaround; the pact doesn't solve Intel's process gap. But it does create repeatable, shippable systems Intel can assemble at scale, which is the right bridge while process technology catches up. In addition, we make the following observations: We believe this pact turns CUDA from a datacenter phenomenon into a full-stack standard that spans enterprise AI and mainstream PCs. Nvidia gains a distribution partner with unmatched x86 reach, converting its software gravity into new surface area in the form of client SoCs, rack-scale x86-CUDA hybrids, and an easier onramp for enterprises that have been slow to adopt AI. In our view, that bridge is the potential accelerant as customers maintain x86 familiarity while stepping into accelerated computing, which further broadens Nvidia's moat and weakens bespoke alternatives. Two near-term effects stand out, specifically: 1) Nvidia enters the mainstream PC profit pool directly with x86-CUDA laptops that extend beyond gaming into volume client markets; 2) The partnership pressures cloud-specific silicon strategies that aren't CUDA-compatible. We don't expect hyperscaler alternatives to disappear, but we do expect large-scale bets outside CUDA to narrow until (or unless) they gain first-class CUDA status. Bottom line: Our research indicates CUDA becomes the default development platform for data center and AI PCs, with Intel acting as the strategic partner rather than a desperate competitor. Nvidia trades some control for much more surface area, turning x86 estates into a distribution channel for its platform. Genius. We believe AMD remains one of the industry's best operators and is positioned to keep taking near-term share in PCs and x86 data center markets. It is unburdened by a captive foundry and supported by solid product execution. The strategic problem is medium-term in that the center of gravity is shifting to CUDA-aligned hybrids, and Intel now has a clearer x86-CUDA lane that AMD lacks. Without first-class CUDA access, AMD's addressable market narrows as enterprises and OEMs standardize on pre-validated CPU-GPU systems with CUDA as the de facto API. Instinct accelerators have shown real progress with its own software stack, but once CUDA becomes native to x86, the rationale for a parallel ecosystem weakens and the investment case gets harder beyond the next couple of years. Bottom line: AMD can still grow through 2025-26 on execution and x86 share gains, but sustaining that trajectory post-2027 likely requires a key role inside the CUDA wave. Without it, we see a tougher slope for Instinct and a gradual repositioning to the lower tier of accelerated platforms. Open-source CUDA alternatives remain a wildcard but currently we see them as niche in specific segments such as high-performance computing and not disrupting CUDA in the near term. Despite pundit commentary to the contrary, we believe Arm is a clear beneficiary, not a casualty. Nvidia will continue to ship Arm-based processors and full frames to clouds and OEMs even as it pursues x86-CUDA hybrids with Intel. In our view, Arm keeps its structural advantages - faster tape-outs, lower cost per function, low power, strong ecosystem and massive wafer volume - and remains at least a generation ahead on time-to-market for many workloads. The result is a dual-track Nvidia roadmap in the form of Arm systems that push performance per watt and cost efficiency, alongside x86-CUDA systems that maximize compatibility and enterprise adoption. For hyperscalers, we expect them to continue to thrive in AI but there will be friction in silicon initiatives. They want less dependency on Nvidia, yet the economics and software gravity of CUDA narrow the window for off-stack alternatives. Bottom line: our research indicates there are no obvious losers here. Arm rides the same AI wave with superior cost/function curves, Nvidia monetizes both instruction sets, and clouds grow their TAM - just with fewer places to hide from CUDA's center of gravity. We believe this pact resets competitive assumptions. Lip-Bu Tan is making a pragmatic move that gives Intel a credible lane back into accelerated computing without assuming unlimited cash or time. CUDA on x86 creates an immediate bridge for enterprises and PC OEMs, buffering client volume erosion and giving Intel a repeatable SoC product line to assemble at scale. It does not, in our view, fix the process gap with foundry remaining a structural overhang until Intel proves sustained node cadence or forges a JV/partnership model that de-risks capital and attracts external customers. The most rational near-term split is still leading dies at TSMC with Intel driving system integration and volume packaging. We continue to favor a plan that spins foundry. For Nvidia, the math is compelling. A $5 billion equity check unlocks a distribution flywheel across PCs and enterprise data centers and extends CUDA's reach into the one market where Nvidia has historically been underpenetrated. Our research indicates Nvidia captures a 10X larger TAM uplift versus its cash outlay as accelerated systems become the default footprint and x86 turns from competitor to onramp. The company trades a measure of control for far greater market surface area that we see as accretive to the platform. Risks remain executional rather than conceptual in our scenarios. Intel must ship on schedule, align cultures, and keep the foundry story from constraining its velocity; Nvidia must balance openness with platform integrity and manage hyperscaler tensions. In our opinion, these risks are exceedingly manageable relative to the strategic upside. The following two points are noteworthy: Bottom line: This deal represents the functional handoff from the x86 era to a CUDA-centric system era. Intel regains relevance through packaging, systems and distribution; Nvidia becomes the new default in AI infrastructure with a bigger, more durable TAM.

INTC stock price surges 30%: Could an Nvidia and Intel teamup be the best chance to beat China in AI?

Nvidia took a cue from the U.S. government on Thursday, acquiring a $5 billion stake in Intel. Last month, President Trump announced that the U.S. government was also making a $9 billion investment in Intel, meaning that now Nvidia and the United States are among Intel's largest shareholders. All told, it's a major Silicon Valley shakeup that could have wide-ranging effects, especially as the AI race continues to heat up. In fact, the AI arms race is at the center of the new partnership, as the two will jointly develop chips for both personal computers and data centers. "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," said NVIDIA founder and CEO Jensen Huang in a statement. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." There's no denying that the news is big, and investors treated it as such. Intel's stock soared more than 30% on Thursday, and Nvidia's jumped more than 3.5%.

Jensen Huang Says NVIDIA is Confident in Intel After $5 Billion Investment

Intel CPUs would allow entire NVIDIA racks to function "as if it's one giant computer, one giant GPU," said Huang. NVIDIA and Intel announced a significant collaboration on September 18 to co-develop advanced chips for data centres and personal computing. As part of the deal, NVIDIA will invest $5 billion in Intel's common stock at $23.28 per share, subject to regulatory approval. The partnership aims to integrate NVIDIA's AI and accelerated computing technologies with Intel's x86 CPUs. Intel will design custom x86 CPUs for NVIDIA's AI infrastructure platforms and produce new x86 system-on-chips (SoCs) combining NVIDIA RTX GPU chiplets with Intel CPUs for PCs. During a recent briefing by NVIDIA chief Jensen Huang and Intel CEO Lip-Bu Tan, Huang said, "All the work that we did gave us a lot of confidence in the future of Intel. And so...I've become quite a significant shareholder, because we believe in this, and we have confidence in them to create these amazing products." Huang also expressed that the deal would bring x86 into NVIDIA's NVLink ecosystem and enable rack-scale AI supercomputers. He said custom Intel CPUs would make entire racks function like one giant computer and GPU combined, boosting NVIDIA's supercomputing reach. For the PC market, Huang said the partnership would target an underserved segment. "There are 150 million laptops sold per year... an entire segment of the market where the CPU and GPU are integrated has been largely unaddressed by NVIDIA today. With Intel, we're creating an SoC that fuses CPU and RTX GPU into one virtual giant chip." Tan called the agreement a game-changing opportunity and said it would combine NVIDIA's leadership in AI-accelerated computing with Intel's data centre and PC strengths. He added, "Our motto is simple: make great products and delight the customer. That is what this collaboration is about." This collaboration follows recent strategic investments in Intel. In August 2025, Japan's SoftBank announced a $2 billion investment in Intel, acquiring a 2% stake in the company. Additionally, in August, the US government announced a $8.9 billion investment in Intel, acquiring a 9.9% stake in the company. This included the government's equity stake to be funded by the remaining $5.7 billion in grants previously awarded (not paid yet) under the CHIPS and Science Act and $3.2 billion awarded to the company as part of the Secure Enclave program. These investments have positively impacted Intel's stock price, which surged nearly 30% following the announcement of NVIDIA's investment. There have been previous discussions that while these investments provide a financial lifeline for Intel, the company faces challenges in regaining its competitive edge in the semiconductor industry. The giant faces the challenge of revitalising its position in the market. Huang said NVIDIA would become a major customer of Intel server CPUs and a large supplier of GPU chiplets for Intel's PC SoCs. He estimated the opportunity at up to $50 billion annually across data centres and consumer PCs. On the equity stake, Huang expressed, "This is a big partnership, and we think it's going to be fantastic for Intel and for us. We were delighted to be a shareholder because the return will be fantastic both in our business and in our equity share of Intel." Both leaders confirmed the companies had been working on the architecture for about a year and dismissed speculation of political involvement. Huang added, "The Trump administration had no involvement in this partnership. It is 100% focused on custom CPUs and consumer PCs."

Nvidia invests $5bn in rival chipmaker Intel

Intel CEO Lip-Bu Tan speaking at Intel Vision 2025 in Las Vegas in March. Image: Intel Nvidia and Intel will also be collaborating to develop custom data centres and personal computer products. Nvidia is purchasing $5bn worth of its struggling competitor Intel's stock, just weeks after the US government bought an $8.9bn stake in the chipmaker and SoftBank invested $2bn into the company. Nvidia is investing into Intel at a stake price of $23.28 a share, the statement from the company today (18 September) read. Intel's share value shot up by nearly 33pc following the announcement. The legacy chipmaker has struggled in recent years, losing 61pc of its value in 2024, its biggest drop in its 53 years as a public company. It bore these gargantuan losses over its slow pick-up of AI, with its chips lagging behind rivals such as Nvidia and AMD, that quickly gained the market share Intel lost. However, struggling or not, strong public and private backing behind the company makes it clear that companies such as Intel are simply too big to fail - or let fail. The announcement came alongside a joint collaboration between the two semiconductor giants, which have agreed to jointly develop multiple generations of custom data centre and personal computer products. As per the deal, Intel will build Nvidia-custom x86 CPUs that Nvidia will then integrate into its AI infrastructure platforms for sale to consumers. Intel will also build x86 system-on-chips that integrate Nvidia RTX GPU chiplets. "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. Together, we will expand our ecosystems and lay the foundation for the next era of computing," said Nvidia founder and CEO Jensen Huang. Lip-Bu Tan, the CEO of Intel added: "Intel's x86 architecture has been foundational to modern computing for decades". "We appreciate the confidence Jensen and the Nvidia team have placed in us with their investment and look forward to the work ahead as we innovate for customers and grow our business." Intel's deal with the US government was a surprising, yet swift one. Earlier last month, US president Donald Trump called for Intel CEO Tan's resignation, after US senator Tom Cotton accused the CEO of having a stake in "hundreds of Chinese advanced-manufacturing and chip firms", some of which he claimed had "ties to the Chinese People's Liberation Army". Days later, the new Intel CEO (who took over earlier this March), met with the president, and the meeting seemed to have gone well. Trump seemed chuffed about the deal he carved out with Intel, saying, "[Tan] walked in wanting to keep his job and he ended up giving us $10bn for the United States." Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

NVIDIA Buys 4.9% of Intel, RTX Integrated Graphics Coming to x86 SoCs

NVIDIA just shook up the semiconductor world by dropping $5 billion into Intel, buying a 4.9% stake at $23.28 per share. This isn't just about money -- both companies are teaming up to co-develop future processors and GPUs. The move could change how gaming laptops, handhelds, desktops, and even massive AI servers are built. One of the biggest changes coming is that Intel processors will soon ship with NVIDIA RTX graphics built right in. Instead of relying on Intel's own Arc iGPUs, upcoming x86 chips will integrate RTX hardware directly. For everyday users, this means better performance in gaming and creative tasks straight out of the box. It also echoes Intel's earlier experiment with AMD graphics in the Kaby Lake G chips, but this time the partnership looks much bigger and longer-term. The deal isn't limited to consumer products. NVIDIA also plans to use Intel's CPU expertise for its massive AI infrastructure. Today, NVIDIA mixes its Arm-based Grace and Vera processors with standard x86 chips for platforms like DGX and HGX servers. With Intel's help, NVIDIA will get custom x86 CPUs tuned for AI workloads, making them better companions for the company's GPU accelerators. Intel's upcoming Clearwater Forest Xeons, with up to 288 efficiency-focused cores on the 18A process, could be part of that plan. Special versions designed with higher clock speeds for AI training are also possible. On top of that, NVIDIA has found a new manufacturing partner in Intel Foundry. Future NVIDIA GPUs may be built on Intel's 18A and 14A process nodes, with advanced packaging technologies like Foveros 3D stacking opening the door to more complex designs. This shift could lessen NVIDIA's dependence on overseas fabs like TSMC and bring part of its production closer to home. For Intel, landing NVIDIA as a client is a major win for its foundry business, which has struggled to attract high-profile customers until now. Investors reacted quickly to the announcement. Intel shares jumped 33% before the market opened, while NVIDIA stock rose 25%. The partnership puts pressure on AMD, which will now be competing against a combined Intel-NVIDIA force in both consumer and data center markets. Both CEOs, Jensen Huang and Lip-Bu Tan, will give more details in a joint press conference later today. Source: NVIDIA

NVIDIA inks $5B deal with Intel to build new x86 SoCs with NVIDIA RTX GPUs for consumers

TL;DR: NVIDIA and Intel have announced a $5 billion partnership to develop custom x86 processors integrating NVIDIA RTX GPUs, marking Intel's shift from in-house GPU development. This collaboration aims to advance AI computing and consumer PCs, potentially reshaping semiconductor manufacturing and boosting Intel's market position. NVIDIA and Intel have just announced a new $5 billion deal that will see the two companies working together on joint chip development, where Intel will build custom x86 chips for NVIDIA with RTX GPUs onboard. In the future we'll see new Intel processors with NVIDIA RTX GPUs as well as building NVIDIA's x86 CPUs for integration inside of AI clusters, with NVIDIA investing $5 billion in Intel's common stock at $23.28 per share. It's an interesting and rather game-changing move, as it means that Intel has all but walked away from its in-house GPU development, after rumors from many years ago that Intel could be canceling its Arc desktop GPUs altogether. Fast forward to today and the world's biggest chipmaker has teamed with the world's biggest GPU company to use its RTX GPUs on new consumer x86 processors, what an interesting turn of events. Furthermore, we had rumors just a few months ago that said Intel would be making a custom NVIDIA chip on its Intel 18A node for the next-gen Nintendo Switch 3 console, and now this deal is here. On the personal computing side of this deal, Intel will build and offer to the market new x86 SoCs that integrated NVIDIA RTX GPU chiplets, with the new x86 RTX SoCs to power a wide range of PCs that have world-class CPUs and GPUs inside. What we don't know just yet: Intel will be fabbing the CPU chiplets at its in-house Intel Foundry, but it wasn't made clear if the NVIDIA RTX GPU chiplets will be fabbed by Intel, which would be fantastic to see. Right now, TSMC fabs all of NVIDIA GPUs for consumer and AI products, but if Intel Foundry can scoop up a huge bit of that business it would be a game-changer for Intel and its semiconductor business. Intel stock is up over 22% from this news, showing how big it is to the market before we've even seen a product hit the market. Making a deal with the world's largest company is a big deal in itself, so it'll be great to see if this helps in the recovery of Intel which has been suffering in more than one way, for quite some time now. What about NVIDIA x MediaTek's upcoming Arm-based SoC: NVIDIA has been working with MediaTek on a new Arm-based AI PC processor that has an NVIDIA RTX GPU, which has been delayed into 2026 reveal. This new Intel + NVIDIA deal doesn't have an effect on the MediaTek + NVIDIA deal, as NVIDIA will have both Arm and Intel options in the years ahead. NVIDIA founder and CEO Jensen Huang said: "AI is powering a new industrial revolution and reinventing every layer of the computing stack - from silicon to systems to software. At the heart of this reinvention is NVIDIA's CUDA architecture. 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. Together, we will expand our ecosystems and lay the foundation for the next era of computing".

Nvidia to invest $5B in Intel; companies will work together on AI infrastructure, PCs

NEW YORK -- Nvidia, the world's leading chipmaker, announced a new partnership on Thursday with struggling semiconductor company Intel. Nvidia and Intel will team up to work on custom data centers that form the backbone of artificial intelligence infrastructure as well as personal computer products, Nvidia said in a press release. Nvidia also said it's investing $5 billion in the common stock of Intel, which has been struggling. The deal is subject to regulatory approvals. The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that's propelled Nvidia into the world's most valuable company.

Nvidia to invest $5 billion in Intel; companies will work together on AI infrastructure and PCs

NEW YORK (AP) -- Nvidia, the world's leading chipmaker, announced on Thursday that it's investing $5 billion in Intel and it will collaborate with the struggling semiconductor company on products. Nvidia and Intel will team up to work on custom data centers that form the backbone of artificial intelligence infrastructure as well as personal computer products, Nvidia said in a press release. Nvidia said it will spend $5 billion to buy Intel common stock at $23.28 a share. The investment is subject to regulatory approvals. "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. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that's propelled Nvidia into the world's most valuable company. In premarket trading, Intel shares soared 30%. Nvida shares added 3%.

Nvidia and Intel joining forces could be seen as anti-AMD, but it just goes to highlight AMD's advantage with Ryzen and Radeon under one roof

You've likely heard the news by now: Intel and Nvidia have agreed to build a new range of products together. These co-developed chips will fuse Intel's x86 architecture with Nvidia's RTX graphics chiplets. The idea being, if you bring together both companies' tech, it's possible to deliver something more flexible, more desirable than either company can deliver on its own. The benefits for the two companies are clear enough. Nvidia needs processors for GPU-accelerated server racks, and despite its best efforts to buy Arm, that fell through, dashing any hope of becoming a fully-integrated hardware company with it. Intel needs a helping hand in a few ways. The company is struggling with a falling share price and recently struck a deal with the US government to buy a share of the business, and getting an in with one of the richest companies on the planet isn't a bad get. Though supercharging its processors with more capable and powerful graphics chips has a few big benefits, too. To some degree in gaming, sure, but mostly AI. "I think these are going to be revolutionary products. I know that all of us working on it are super excited about it," Nvidia CEO Jensen Huang said in a joint conference with Intel CEO Lip-Bu Tan. "Nothing of its kind has ever been built before." You might have something to say about that last statement if you work for AMD. The company is able to deliver competitive products across both CPU and GPU in-house. That's been embedded into its DNA since it bought ATI, and only improved on and amplified since with the growing success of its Zen architecture (with admittedly a few ups and downs in between -- a story for another time), and delivered many generations of APU. If anyone has shown the capability to consistently deliver a combination of high-performance processors and graphics in a single chip or system-on-chip (SOC), it's AMD. AMD is dominant in games consoles, through its semi-custom division and partnerships with Microsoft and Sony, for precisely this reason. It's been highly successful here, scoring these console manufacturers as repeat clients for multiple generations, and according to current expectations for at another generation to come. In the PC space, we have products such as the newly-released Ryzen AI Max 300 Series to point to, a processor line-up we've tested multiple times in various forms this year. You might then consider this move from Intel and Nvidia to be pretty anti-AMD. I'm sure Dr. Lisa Su and other AMD executives have had a few emergency meetings to discuss yesterday's announcement -- which saw AMD's share price dip sharply and then largely recover. Though there's definitely a positive way of framing it for the red team: It just goes to show how much of an advantage AMD has if it plays its cards right. No matter the promise of integration between Intel and Nvidia, no two competing companies will ever be able to collaborate quite as well as multiple departments within the same company. The sharing of GPU IP, if any such sharing occurs, between Intel and Nvidia would have to be pretty tight to keep either party out of the other's biggest secrets, especially as both companies sort of dabble in similar sectors (Nvidia with Arm partnerships, Intel with Arc GPUs). AMD's advantage also extends deep into the technological stack. Let's take Intel's Foveros technology, for example. This is a way of lashing chiplets (tiles, in Intel speak) together onto a single interposer to operate as a single chip. We've seen this in action with various mobile architectures, Meteor Lake and Lunar Lake, but also since come into play with desktop chips. It's also the key to these future x86 RTX SOCs. "Intel has the Foveros multi-technology packaging capability, and it's really enabling here," says Jensen. "And the reason for that is because, as we all know, Nvidia's GPU technology is based on TSMC foundry. And this is one of the extraordinary things that you can do, connecting Nvidia's chiplets with Intel CPUs in a multi-technology packaging capability and multi-process packaging technology." AMD has similar chiplet technology. It's used chiplets across both of its Ryzen CPU and Radeon GPU products at various points throughout the past decade, even before Intel got around to it, and to huge success. Though the processor I'd point to here is the Ryzen AI Max+ 395 in the Framework Desktop, or to a slightly lesser degree, the Ryzen AI Max 390, a chip I recently tested in my Asus ROG Flow Z13 review. The more powerful of the two here, the 395, comes with desktop-grade components inside an ostensibly mobile part: that's 16 Zen 5 cores and 40 Radeon 3.5 CUs. All connected via an interconnect specially designed for this chip to deliver high bandwidth, low latency, and low power. Not only does this sound a lot like what I'd expect a high-performance x86 RTX SOC might one-day deliver (noting here we don't actually know what these are yet, they're a long way off), with the exception of being AMD's x86 and GPU components instead, it also has those smaller details in interconnect, packaging and software from the same company. Now, you can argue whether there's always been a fluid relationship between AMD's many teams in the past, but in the future, especially one that relies more and more on AI, it could play an increasingly important role. This is all about AI, right? The Ryzen AI Max 300-series wasn't really intended for gaming. I mean, it's decent enough for playing any number of modern games, but it's easily defeated in price/performance by a discrete GPU and a lower core-count chip. We've not rated it for gaming in either of the products we've used it in. No, these chips do best when loaded up with a significant amount of memory, allowing them to run AI models with a huge number of parameters, such as the new gpt-oss-120b from OpenAI or Alibaba's 253 billion-parameter model. AI capabilities are seemingly the endgame for AMD here, as it builds out big bandwidth, big GPU, low-power chips. As much as it looks to be a target for Intel and Nvidia. If the future of AI is an increasing amount of local compute, and local compute powered by a GPU, rather than an NPU, then it's AMD that has the headstart in actually delivering that. Especially on mobile, which is a growing slice of the PC market. AMD also has the benefit of having more time to develop on these products over the next few years, whereas Intel and Nvidia's partnership is only in its nascent stage. So, none of this spells doom for AMD to me. They say imitation is the highest form of flattery, right?

Intel Got $5 Billion, but Nvidia Could Be the Big Winner. Here's Why

If you were to look only at Wall Street's reaction to Nvidia's $5 billion investment in Intel on Thursday, it would be easy to assume Intel had gained the most from the deal. The company's stock surged 23 percent, while Nvidia shares closed up just 3.5 percent. But some analysts say that if you take a longer-term view of the partnership you might reach a different conclusion. Intel got some much-needed cash, but Nvidia, with its investment, may have managed to marry its GPUs with the most widely used CPU in the world -- something that could secure its computing dominance moving forward and diversify its sources of income. (GPUs, or graphics processing units, are key for AI, and CPUs are what power regular consumer devices, like laptops and phones.) "What this move really signals is NVIDIA locking down the rules of the new digital economy," said analyst Futurum Group in a note to investors. Nvidia became a 4 percent owner of Intel with the stock purchase. The deal will make Intel a player in the AI game, while letting Nvidia financially double dip as both a shareholder and a manufacturing partner. Beyond the clout it gains in the AI world, Intel could benefit from utilizing Jensen Huang as a management mentor, after decades of poor leadership by its own leaders. While AI chips are the main focus of the agreement, Intel will also build and offer chips that integrate Nvidia's RTX GPU. That opens up new income avenues for Nvidia, should AI companies pull back on chip purchases or explore offerings from other companies. Brian Mulberry, senior portfolio manager at Zacks Investment Management, wrote in a note that the deal "diversifies Nvidia's product mix away from just data center driven revenues over the next five years. [There is] huge demand there, but also from a very small and select group of customers able to finance that demand." The partnership with Nvidia could result in Intel becoming even more dominant in the PC market. AMD shares lost ground on news of the Intel deal, closing down roughly 1 percent Thursday. TSMC and Qualcomm could also see impacts over the coming years. Nvidia paid slightly more for its shares than the U.S. government did with its $8.9 billion investment last month. (Nvidia paid $23.28 per share versus the $20.47 the government paid.) With Thursday's stock surge, though, the company has already (on paper) recouped more than $1.5 billion of the money it spent. The purchase also makes Nvidia the second largest shareholder of Intel, behind the U.S. government. Under the agreement, Nvidia will help to design custom processors for data centers, which it will sell alongside its AI GPUs. It will also ensure its chips and the Intel chips communicate at higher speeds, which will possibly give it a competitive advantage over rivals, including China's TSMC. While the companies will work together to co-develop those chips, the deal made no mention of Intel's manufacturing business. That division has struggled with losses during the AI chip revolution and has become an albatross for Intel. Intel's manufacturing division isn't likely to go away. It's the only large-scale chipmaking facility in the U.S. and does work for the Department of Defense. Nvidia could choose to use it if necessary (or if pressured further to manufacture more of its chips in the U.S.), but if so, it could leverage any manufacturing deal to claim a bigger percentage of Intel's stock. "This historic collaboration ... will expand our ecosystems and lay the foundation for the next era of computing," said Huang in a statement announcing the deal. It might do that, but in the process, it could also elevate Nvidia to even higher heights in the tech world. The extended deadline for the 2025 Inc. Best in Business Awards is this Friday, September 19, at 11:59 p.m. PT. Apply now.

Nvidia to invest $5 billion in Intel; companies will work together on AI infrastructure and PCs

NEW YORK (AP) -- Nvidia, the world's leading chipmaker, announced on Thursday that it's investing $5 billion in Intel and it will collaborate with the struggling semiconductor company on products. Nvidia and Intel will team up to work on custom data centers that form the backbone of artificial intelligence infrastructure as well as personal computer products, Nvidia said in a press release. Nvidia said it will spend $5 billion to buy Intel common stock at $23.28 a share. The investment is subject to regulatory approvals. "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. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." The two companies said they will work on "seamlessly connecting" their architectures. For data centers, Intel will make custom chips that Nvidia will use in its AI infrastructure platforms. while for PCs products, Intel will build chips that integrate Nvidia technology. The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that's propelled Nvidia into the world's most valuable company. Intel lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, and expects to slash its workforce by a quarter by the end of 2025. Nvidia, meanwhile, has soared because its specialized chips are underpinning the artificial intelligence boom. The chips, known as graphics processing units, or GPUs, are highly effective at developing powerful AI systems. In premarket trading, Intel shares jumped 30%. Nvidia shares added 3%.

Nvidia to invest $5B in Intel as part of new chip partnership - SiliconANGLE

Nvidia Corp. today announced plans to invest $5 billion in Intel Corp. as part of a collaboration that will see the companies jointly develop new chips. The partnership encompasses both the data center and consumer segments. In the server market, Intel will develop custom central processing units optimized to work with Nvidia graphics cards. For consumers, Intel will introduce personal computer processors equipped with Nvidia chiplets. Shares of both companies rose on the news. Intel jumped more than 20% while Nvidia is up 3.8%. "There's more in this deal for Nvidia than there is for Intel," said Dave Vellante, co-founder of SiliconANGLE Media and chief analyst at theCUBE Research. "Ironically, Intel's stock is up much more than Nvidia's today, underscoring a fundamental misunderstanding of this deal by the market. This gives Nvidia a more direct path to Intel's PC ecosystem while at the same time helping accelerate enterprise AI adoption with a hybrid CPU/GPU approach." Vellante added that "$5 billion is nice, but it doesn't address the core of Intel's most pressing challenge, which continues to be what to do about foundry. Frankly, the design side of Intel's business is solid, but it's hampered by the financial drag of foundry. I would have preferred to see a $5 billion initial investment in foundry in the form of wafer-scale volume commitments, and that's the missing piece here." Currently, data center operators link together the Nvidia graphics cards and Intel CPUs in their servers using the PCIe interconnect. As part of their collaboration, the chipmakers will give customers the option to use NVLink instead of PCIe. NVLink is an interconnect that Nvidia originally developed to let customers connect its chips to one another. The technology, which is currently in its fifth iteration, provides more than 10 times the throughput of PCIe. Nvidia plans to incorporate the custom chips that Intel will develop as part of the partnership into its "AI infrastructure platforms." The graphics card maker sells a line of artificial intelligence appliances called the DGX series. The company's most advanced DGX system, the GB300, combines 72 graphics processing units with 36 of its internally developed Grace CPUs. Nvidia Chief Executive Officer Jensen Huang said in a media briefing today that the chipmaker will become a major Intel customer. It will resell the CPUs that it purchases to customers. Huang, who hosted the briefing with Intel CEO Lip-Bu Tan, stressed that Nvidia will continue to develop its own custom CPUs based on the Arm architecture. Huang said Nvidia plans to ship not only its upcoming Vera chip, the successor to the Grace CPU in its GB300 appliance, but also a subsequent generation of custom CPUs. Furthermore, he confirmed recent reports that Nvidia is working on a CPU called the N1. The chip will power the company's DGX Spark system, a miniature version of its DGX data center appliances that can be used as a developer workstation. "It's a strategic move by Nvidia, which now gets control on the missing piece in its chip portfolio -- CPUs," said Constellation Research analyst Holger Mueller. "If Nvidia manages to tie its chips into the Intel server offerings, it will give it an additional foothold in the on-premises data center. Previously partnerships were the alley (such as with HPE), but partnerships in chip land don't last forever. CxOs need to be aware of lock-in, but for now I think CxOs with Intel server farms are happy." In the consumer market, Intel plans to ship PC systems-on-chip equipped with Nvidia GPU chiplets. The chiplets will be derived from the company's RTX series of standalone consumer graphics cards. The most advanced chips in the RTX series include AI cores based on Blackwell, the architecture that powers Nvidia's data center GPUs.

Nvidia Invests $5 Billion in Intel to Develop AI and PC Chips

In August, the US government reportedly took a 10 percent stake in Intel Nvidia announced a major investment in Intel on Thursday, which will make it one of the biggest investors in the chipmaker. The financial investment is part of a larger deal between the two companies. It will also witness the two collaborating to develop artificial intelligence (AI) infrastructure and chipsets for personal computers. Nvidia's partnership with Intel comes at a time when the chipmaker has been struggling to keep up with the AI race and has lost significant valuation in the market. Nvidia, Intel Join Hands to Develop Chipsets In a newsroom post, Nvidia announced the new deal it signed alongside Intel. The financial part of the deal includes the GPU maker investing $5 billion (roughly Rs. 44,100 crore) in Intel's common stock. These stocks were purchased at the price of $23.28 (roughly Rs. 2,054) per share. Notably, Nvidia highlighted that the investment has not closed, is subject to regulatory approvals and customary closing conditions of the market. "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. Together, we will expand our ecosystems and lay the foundation for the next era of computing," said Nvidia Founder and CEO, Jensen Huang. As part of the deal, Nvidia and Intel will integrate their chipset architectures using NVLink. This will enable the integration of Intel's x86 ecosystem and Nvidia's RTX ecosystem, allowing for the development of more powerful platforms. On the AI infrastructure side, the chipmaker will develop custom x86 CPUs for Nvidia's AI platforms and customers. The two companies will also jointly build x86 system-on-chips (SoCs) that integrate RTX GPUs. These will then be taken to the market to power a wide range of consumer PCs. According to a Reuters report, the deal does not involve Intel's foundry, the contract manufacturing business via which it develops chips for other companies. The foundry is reportedly one of the biggest sources of Intel's financial struggles. Analysts have told the publication that Intel's survival could depend on whether it can find a large customer for its foundry.

Nvidia Just Gave Intel a Vote of Confidence. Will That Keep Intel's Stock Rising?

Is a deal with AI darling Nvidia enough to win investors over to Intel's stock? A $5 billion investment and a promise to co-develop chips for data centers and PCs from the chip designer at the heart of the AI boom sent Intel (INTC) shares soaring 22% to around $30 Thursday. That brought the stock to levels not seen since July 2024, before a wider-than-expected loss and massive restructuring plan announced that August dealt a blow to investor confidence and sent its stock reeling. Roughly a year later, the struggling chipmaker has welcomed a new CEO, laid off workers, and struck a deal with President Donald Trump to sell the government a 10% stake. That inspired enough confidence to bring the stock up 24% this year heading into Thursday's session. Today's Nvidia-fueled (NVDA) momentum has Intel's year-to-day gains above 50%. Some analysts now think the momentum could mark a turning point in sentiment for the stock, which Wall Street has largely viewed with caution and currently sits at around half of its 2021 highs. All 11 analysts tracked by Visible Alpha held "hold" ratings for Intel's stock up until Thursday. The Nvidia news is "a game changer deal for Intel as it now brings them front and center into the AI game," Wedbush's Dan Ives told clients in a note Thursday. Wedbush said it expects the move, which could lend Intel some of Nvidia's AI-driven tailwinds, to help stem further losses of Intel's existing market share in server and PC products and boost the company's longer-term prospects. "The chip landscape remains [Nvidia's] world with everybody else paying rent," Ives said. Bernstein analysts led by Stacy Rasgon called the blessing from Nvidia "priceless." Some analysts said Intel may need further support. Moor Insights & Strategy CEO Patrick Moorhead called it a "step in the right direction" in an interview with CNBC Thursday, though he suggested Intel likely requires another $5 billion to $10 billion to build out its chip manufacturing capabilities. However, Moorhead said, there's now a "pretty long line of people" the chipmaker could turn to in exchange for some concessions. "The question becomes control, ownership, and voting rights," he said.

Nvidia Is Investing $5 Billion in Rival Intel: 'A Game Changer Deal'

Nvidia, the world's leading manufacturer of AI chips, and the most valuable company in the world with a $4.2 trillion market cap, announced on Thursday that it will invest $5 billion in competitor Intel, which has a comparatively lower ($144.8 billion) market value. The investment gives Nvidia a 4% stake in Intel. The deal requires that Nvidia and Intel work together to create chips for personal computers and data centers. Intel's specialty is central processing units, or chips that act as the brain of a computer, handling different general-purpose tasks. Nvidia, on the other hand, focuses on making graphics processing units that can process large amounts of data for more specialized, intensive tasks like AI development, gaming, and video editing. Related: Nvidia's CEO Says It No Longer Matters If You Never Learned to Code: 'There's a New Programming Language' The two companies are now joining forces to create chips that build on both areas of expertise. They intend to design chips that combine Nvidia's AI strengths with Intel's central processing power -- "a fusion of two world-class platforms," Nvidia CEO Jensen Huang said in a press release. "Together, we will expand our ecosystems and lay the foundation for the next era of computing," Huang stated in the release. Meanwhile, Wedbush researcher Dan Ives wrote in a note following the announcement that "this is a game-changer deal for Intel" that "brings them front and center into the AI game." Intel was once a significant player in the chip industry, but has struggled to adapt to shifting technologies like mobile devices and AI. The chipmaker faced significant challenges, including three consecutive years of declining revenue and loss of market share to competitors, such as Nvidia and AMD. Nvidia captured between 70% and 95% of the AI chip market last year, compared to Intel's less than 1%, per CNBC. Intel has attempted to cut costs, announcing layoffs that affected 33,000 people earlier this year, reducing its workforce to 75,000 employees. Related: Intel Requires Employees to Work From the Office More Often: 'This Action Is Necessary' In August, the U.S. government announced that it was taking a close to 10% stake in Intel, investing $8.9 billion for 433.3 million shares. At the time of writing, that stake is now worth $13.9 billion. Intel last month also agreed to a $2 billion investment from Japanese holding company SoftBank. In the press release, Intel CEO Lip-Bu Tan said that the new partnership with Nvidia would "enable new breakthroughs for the industry." "We appreciate the confidence Jensen and the Nvidia team have placed in us with their investment," Tan stated in the release.

Nvidia buys $5 billion worth of Intel stock and announces major partnership for "multiple generations" of hardware covering consumers, AI, and data centers: "Fusing the world's best CPU and GPU"

"AI is powering a new industrial revolution," says Nvidia CEO Jensen Huan Hardware competitors Nvidia and Intel have announced a new and major partnership, with the two companies collaborating on "multiple generations" of hardware that will include consumer products as well as technology for data centers. In a press release, Nvidia revealed plans to purchase $5 billion worth of Intel's common stock, "subject to customary closing conditions, including required regulatory approvals." This isn't a buyout or takeover, but it is a substantial investment. Nvidia says its partnership with Intel will see a focus on "seamlessly connecting NVIDIA and Intel architectures using NVIDIA NVLink -- integrating the strengths of NVIDIA's AI and accelerated computing with Intel's leading CPU technologies and x86 ecosystem to deliver cutting-edge solutions for customers." For personal computing, the realm of us PC gaming mortals, Intel will "build and offer to the market" x86 SOCs (system-on-chips) that integrate Nvidia GPU chiplets. "These new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs," Nvidia says. The pitch is about what you'd expect: "Fusing the world's best CPU and GPU to redefine the PC experience," per Nvidia CEO Jensen Huang's comments at a press conference. The folks constructing data centers, meanwhile, can expect Intel to build "NVIDIA-custom x86 CPUs that NVIDIA will integrate into its AI infrastructure platforms." AI is, unsurprisingly, a recurring theme of the announcement. Huang argues "AI is powering a new industrial revolution and reinventing every layer of the computing stack." He calls this partnership "historic" and stresses it combines Nvidia's AI and "accelerated computing stack" with Intel's CPUs and "the vast x86 ecosystem," almost like peanut butter and jelly with a few slices of banana. "We're going to become a very large customer of Intel CPUs," Huang said at a press conference today. Similarly, Intel CEO Lip-Bu Tan writes: "Intel's leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA's AI and accelerated computing leadership to enable new breakthroughs for the industry." Intel has been falling behind in several processor markets for years, and Nvidia has been banging the AI drum with both hands for some time as well, so in some ways this collaboration comes as no surprise. Just today, Huang argued "general purpose computing has reached its limits," again championing the benefits of accelerated hardware which he reckons "sparked the big bang of artificial intelligence." This deal will give Intel a shot of investment and, seemingly, a seat on the train that Nvidia has ridden to reach millions of customers. Even so, the processor companies joining hands like this, on a Thursday afternoon, comes as a bit of a shock. Asked about the $5 billion investment accompanying the partnership, Huang said it is an "incredible investment" and Nvidia is "delighted to be a shareholder," and said "the return on that investment is going to be fantastic." "It just reflects how excited we are about this partnership," he said. I, too, have been known to drop $5 billion in my excitement.

'We're going to build revolutionary products' says Nvidia CEO Jensen Huang about his newly-announced collaboration with Intel: 'Nothing of its kind has ever been built before'

Impressive claims, but whether Nvidia will eventually use Intel's Foundry in future remains a question mark for now. Speaking at a press conference earlier this evening, Nvidia CEO, Jensen Huang, and Intel chief Lip-Bu Tan took questions from the media about the newly-announced collaboration between the two. While both CEOs refused to be drawn too far in on questions regarding which process the chips created would be built on (or whether Nvidia would commit to making use of Intel's foundry in the near future), the two did have a lot to say about the project, and the scope of the market it's attempting to capture. "With respect to the size of the market," said Huang, "the data center market and the PC market are both large, and we're going to build revolutionary products, first of its kind products. Nothing of its kind has ever been built before for the x86 market." The products in question are said to be both Nvidia-custom x86 CPUs integrated into AI infrastructure platforms for data center usage, and system-on-chips (SOCs) with integrated Nvidia RTX GPU chiplets for the consumer market. "I think these are going to be revolutionary products," Huang continued. "I know that all of us working on it are super excited about it, the architects working on it are super excited about it. And so we're looking forward to telling you more about it over time." Despite the reluctance to give exact details of the project, Huang did give some hints as to how the two architectures might work together for the SOC-based consumer chips: "Intel has the Foveros multi technology packaging capability, and it's really enabling here. And the reason for that is because, as we all know, Nvidia's GPU technology is based on TSMC foundry. And this is one of the extraordinary things that you can do, connecting Nvidia's chiplets with Intel CPUs in a multi-technology packaging capability and multi-process packaging technology." "And so it's really a fabulous way of mixing and matching technology, and that's one of the reasons why we're going to be able to innovate so quickly and build these incredibly complex systems and deliver it as a multi-chiplet systems package." So, it seems as though the new chips will likely be a straight-up fusion between Nvidia's TSMC-based GPU tech and Intel's mostly-TSMC-based tech for now. When asked for a second time about the prospect of Nvidia someday using Intel as a foundry partner for its advanced AI chips, Intel CEO Lip-Bu Tan said: "As we mentioned earlier, this is more the product collaboration announcement. We both [have] a lot of respect for TSMC, C.C Wei, Morris Chang, and we continue to work with them. "In terms of the Intel foundry, we continue to make progress. And then in terms of the yield performance, 18A, 14A, clearly we want to qualify. Jensen and I will review that, but overall we're going to continue driving our success on the process side, and then win the customer's confidence and trust, and then one step at a time." Exciting stuff nonetheless, isn't it? I don't think any of us would have had an Nvidia/Intel collab on our books this morning, but it seems the two have been working together for longer than anyone expected. "The two technology teams have been discussing and architecting solutions now for probably coming up to a year," said Jensen. "This partnership, we kept it really quiet."

Intel is in revival mode: Intel stock spikes as Nvidia to invests $5 billion while AMD falls 3.22% -- what does this sudden shift mean for Intel's future and the chip industry?

Intel's stock has surged nearly 30% today, marking its largest single-day gain in decades. This spike follows Nvidia's announcement of a $5 billion investment in Intel, purchasing shares at $23.28 each as part of a strategic partnership to co-develop chips for PCs and data centers. While AMD shares fell 3.22% amid investor concerns over competition. Intel's stock surged dramatically by about 25-30% on September 18, 2025, following a major announcement that Nvidia will invest $5 billion in Intel. This investment is part of a strategic collaboration in which the two companies will jointly develop next-generation custom data center CPUs and PC system-on-chips (SOCs) integrating Nvidia's AI and GPU technologies with Intel's x86 architecture. Nvidia will purchase Intel shares at $23.28 each, pending regulatory approvals. This partnership aims to tightly couple Nvidia's AI stack with Intel's CPU and manufacturing capabilities to drive innovation in data centers and personal computers. The collaboration and investment have been described as historic, signaling a significant milestone for Intel, which has been struggling in the chip market recently, and giving its stock a major boost. Currently, Intel (INTC) is trading at $31.42, with an intraday high of $33.41 and low of $25.06. AMD stock fell 3.22% today following Intel's surge after Nvidia announced a $5 billion investment in the company. The drop reflects investor concerns over AMD's competitive position as Intel strengthens its foothold in AI and data center markets. This decline may affect short-term investor confidence and create volatility in trading, while also increasing pressure on AMD to accelerate product launches and strategic initiatives. Nvidia (NVDA) shares traded higher today, gaining around 3% as the stock opened at about $173.98 and moved between $172.96 and $176.24 during the session. Nvidia is investing $5 billion in Intel for several strategic reasons. First, Nvidia sees value in collaborating with Intel to co-develop custom chips for personal computers and data centers, combining Intel's x86 CPU technology with Nvidia's AI and GPU expertise. This partnership is aimed at creating high-performance AI-enabled computing products that could broaden both companies' ecosystems and accelerate innovation. Second, Nvidia wants to diversify its manufacturing relationships and reduce dependence on Taiwan Semiconductor Manufacturing Company (TSMC), which is currently the primary manufacturer of Nvidia's chips. Intel's extensive manufacturing capacity presents an opportunity for Nvidia to potentially shift some production to the U.S., enhancing supply chain security amid geopolitical tensions. Third, the investment represents a strategic stake in Intel, providing crucial financial support to a company struggling to keep pace with rapid advancements in AI and semiconductor technology. Nvidia gains influence over Intel's future direction, possibly securing favorable terms for future collaborations and usage of Intel's manufacturing facilities. Lastly, the investment is aligned with broader U.S. government interests to strengthen domestic semiconductor manufacturing and innovation. With government backing also supporting Intel, Nvidia's move is both a business and geopolitical play to foster a strong American semiconductor industry and reduce reliance on foreign chip manufacturers. The Intel-Nvidia partnership marks a strategic shift with significant influence on the chip industry by jointly developing next-generation custom chips for data centers and personal computers. Intel will design x86 processors integrated with Nvidia RTX GPU chiplets, while Nvidia will bring its AI and graphics expertise, including their NVLink interconnect technology, to tightly couple CPUs and GPUs, improving performance, bandwidth, and latency for AI workloads. This collaboration tightens Nvidia's control over the computing stack from CPUs to accelerated AI computing while providing Intel with financial strength and renewed credibility amid manufacturing and competitive struggles. The partnership challenges rivals like AMD, which has gained market share through strong CPU-GPU integration, and TSMC, which manufactures a large portion of Nvidia's chips and may face shifts in business if Intel regains foundry ground. It also intensifies competition in the AI infrastructure and high-performance computing sectors. Intel's production of Nvidia-customized chips could boost its foundry ambitions, though key manufacturing deals with Nvidia are not yet included. The Intel-Nvidia partnership presents potential challenges for AMD, which currently holds a strong competitive position in the CPU and GPU markets by offering integrated solutions similar to those Intel and Nvidia aim to develop together. This partnership could intensify competition in high-performance computing, data center, and AI chip markets by combining Intel's x86 CPU architecture with Nvidia's advanced AI and GPU technology. Intel receiving a $5 billion capital infusion from Nvidia and the strategic collaboration may pressure AMD in areas where it has gained market share, especially data center CPUs and AI workloads, given Intel's potential renewed innovation and financial strength. However, AMD is also actively advancing its own AI and high-performance computing initiatives through strategic alliances, such as its partnerships with Oracle Cloud Infrastructure and HCLTech, which focus on AI-driven digital transformation and computing infrastructure. AMD's strong product portfolio with EPYC CPUs and Instinct GPUs and its focus on open AI ecosystems further position it to maintain competitiveness despite the intensified rivalry. The partnership between Intel and Nvidia is likely to accelerate innovation and competition in the semiconductor industry, compelling AMD to continuously innovate and strengthen its collaborations. As of mid-September 2025, Nvidia's stock is showing strong performance with the price hovering around $175 to $176, reflecting recent gains amid continued investor optimism. The company's market capitalization exceeds $4 trillion, highlighting its position as one of the world's largest and most valuable semiconductor firms. Nvidia's GPUs remain central to AI infrastructure globally, powering complex AI training and data center workloads, which fuels investor confidence in its long-term growth. Despite challenges such as competition from hyperscalers developing their own AI chips, Nvidia maintains a dominant market position due to superior GPU performance and robust software platforms like CUDA. Analysts suggest Nvidia has potential upside, with some projecting the stock could rise above $300 by 2027 based on AI market expansion and strong earnings growth. Intel's recent stock surge indicates renewed investor confidence in its future prospects, driven primarily by the strategic partnership with Nvidia. The $5 billion investment from Nvidia signals strong validation of Intel's potential in the AI and semiconductor market, particularly in developing next-generation AI infrastructure and custom chips integrating Nvidia's GPU technology with Intel's CPUs. This collaboration is seen as a lifeline for Intel, which has been struggling with declining market share, financial losses, and operational challenges. The surge reflects optimism about Intel's turnaround strategy under new leadership and the potential to leverage Nvidia's industry dominance in AI to regain competitiveness. Despite current financial hurdles such as significant losses and negative earnings per share, the partnership and capital infusion improve Intel's financial standing and outlook. Investors see this as a critical milestone that could mark the beginning of a recovery and long-term growth, especially as Intel moves to innovate in data center and personal computing markets powered by AI. However, the outlook remains cautiously optimistic, as Intel still faces challenges including cutting workforce and navigating geopolitical tensions in the semiconductor sector. The collaboration does not currently include Intel manufacturing Nvidia's chips, which some analysts view as key to Intel's sustained future growth.

Why Nvidia Just Invested $5 Billion in Its Competitor, Intel

Nvidia, the world's leading chipmaker, announced on Thursday that it's investing $5 billion in Intel and will collaborate with the struggling semiconductor company. The two companies will team up to work on custom data centers that form the backbone of artificial intelligence infrastructure as well as personal computer products, Nvidia said in a press release. Nvidia said it will spend $5 billion to buy Intel common stock at $23.28 a share. The investment, which is subject to regulatory approvals, comes a month after the U.S. government took a 10 percent stake in Intel. "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. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." The two companies said they will work on "seamlessly connecting" their architectures. In morning trading, Intel shares jumped 25 percent, its biggest one-day percentage gain in decades. Nvidia shares added 2 percent. For data centers, Intel will make custom chips that Nvidia will use in its AI infrastructure platforms. While for PC products, Intel will build chips that integrate Nvidia technology. The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that's propelled Nvidia into the world's most valuable company. Intel lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, and expects to slash its workforce by a quarter by the end of 2025. The U.S. government stepped in last month to secure a 10 percent stake, making it one of Intel's biggest shareholders. Federal officials said they invested in Intel in order to bolster U.S. technology and domestic manufacturing. The deal is "bullish for U.S. tech," Wedbush Securities analyst Daniel Ives said in a client note. "This is a game-changer deal for Intel as it now brings them front and center into the AI game," Ives said. "Along with the recent U.S. government investment for 10% (equity stake in Intel) this has been a golden few weeks for Intel after years of pain and frustration for investors." Nvidia, meanwhile, has soared because its specialized chips are underpinning the artificial intelligence boom. The chips, known as graphics processing units, or GPUs, are highly effective at developing powerful AI systems. The deal between the two chipmakers comes as China moves to be less dependent on U.S. semiconductor technology. This week, Chinese officials reportedly forbade several large domestic technology companies from purchasing Nvidia chips, and Huawei announced that it was expanding its development of AI chips and manufacturing. While Nvidia and Intel will work together to develop new chips, a manufacturing deal has yet to be struck between the two. The potential access to Intel's chip foundries by Nvidia poses a risk to Taiwan Semiconductor Manufacturing Company, which currently manufactures the tech giant's flagship processors. Copyright 2025. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. The extended deadline for the 2025 Inc. Best in Business Awards is this Friday, September 19, at 11:59 p.m. PT. Apply now.

Nvidia, Intel Deal Shakes Up AI Game, Hits AMD and ARM - Advanced Micro Devices (NASDAQ:AMD), ARM Holdings (NASDAQ:ARM)

Shares of Intel Corp. INTC soared 28% on Thursday -- notching their best session ever -- after Nvidia Corp. NVDA announced it would pour $5 billion into the rival chipmaker. The agreement signaled a Wall Street shake-up that observers say will reshape the semiconductor world. What Happened: Nvidia And Intel Are Joining Forces Nvidia revealed a $5 billion investment in Intel common stock at $23.28 per share, giving it around a 5% ownership stake. The deal, however, goes far beyond equity -- it's about co-developing multiple generations of custom chips. For data centers, Intel will build custom x86 CPUs integrated into Nvidia's AI infrastructure platforms. On the PC side, Intel plans to launch new x86 RTX SoCs -- system-on-chips combining Intel CPUs with Nvidia RTX GPU chiplets -- targeting the massive 150 million-unit laptop market. Although the investment is pending regulatory approval, analysts believe this marks a pivotal turning point in AI system architecture. Goldman Sachs: AMD And ARM Under Pressure Goldman Sachs analyst James Schneider called the Nvidia-Intel collaboration a net negative for both Advanced Micro Devices Inc. AMD and Arm Holdings Inc. ARM, noting that the partnership could shift enterprise AI and PC dynamics in favor of the two tech giants. Schneider said this custom chip initiative will likely "weaken AMD's enterprise server CPU position on the margin" and slow its pace of desktop share gains. On ARM, he said the move could "dampen investor sentiment on ARM's rate of datacenter market share gain." Goldman Sachs also highlighted Synopsys Inc. SNPS as a key beneficiary of the Nvidia-Intel collaboration, tying it to a rebound in confidence surrounding one of its largest customers -- Intel Corp. "We view this announcement as a positive for Synopsys, as it should help restore confidence in the health of a key customer (Intel) following the company's muted FY26 IP guidance (driven in part by Intel)." 22V Research: This Is About Infrastructure, Not Hype Jordi Visser, analyst at 22V Research, said the Nvidia-Intel tie-up was the logical next step after Oracle Corp. ORCL's blockbuster earnings earlier this month, which he called "the first real proof that AI demand is outstripping supply." Visser argued the market is underestimating the implications of inference -- running AI models in real time -- as the next driver of infrastructure demand. "This wasn't about future hype," Visser said. "It was about businesses already committing billions of dollars to use AI every day." By integrating Intel's x86 CPUs into its AI systems, Nvidia is scaling its proprietary NVLink interconnect protocol to an architecture that has long dominated enterprise and cloud computing. "AI is now infrastructure," Visser added. "And this infrastructure, just like the internet or electricity, needs factories." He also highlighted the shift toward "physical AI" -- embedding intelligence into robots, autonomous machines, and industrial systems -- as the next frontier. The implication? This collaboration is not just about servers and chips. It's about equipping machines to reason and act in the real world. Bank of America: A $25B To $50B Market Opportunity Bank of America's semiconductor team, led by analyst Vivek Arya, called the deal a "historic collaboration" with long-term revenue potential between $25 billion and $50 billion per year. The analysts said the partnership benefits both Intel and Nvidia -- but with caveats. For Intel, the deal validates its x86 CPU technology and significantly increases exposure to the booming enterprise AI market. However, Bank of America flagged ongoing concerns around the lack of foundry customers on Intel's cutting-edge nodes like 18A and 14A. For Nvidia, the benefit is clear: increased scale-up capabilities for enterprise customers using x86 CPUs, deeper integration of its NVLink protocol, and improved access to customers beyond the ARM ecosystem. Importantly, the collaboration keeps Nvidia's foundry options open, allowing it to scale without relying on Intel manufacturing. While the announcement included no commitment to Intel Foundry Services, Bank of America noted that the expanded Nvidia-Intel ecosystem could be a headwind for PCIe and UALink suppliers, as NVLink gains adoption. Now Read: Russell 2000 Hits All-Time Highs: 8 Stocks Power Small-Cap Comeback Image: Shutterstock AMDAdvanced Micro Devices Inc$159.170.79%OverviewARMARM Holdings PLC$144.27-1.55%INTCIntel Corp$30.14-1.41%NVDANVIDIA Corp$177.740.85%ORCLOracle Corp$302.241.89%SNPSSynopsys Inc$476.74-0.70%Market News and Data brought to you by Benzinga APIs

Intel-Nvidia Deal Will Create 'New Class Of Integrated Graphics Laptops,' Huang Says

The plan for Intel and Nvidia to co-design new system-on-chips for laptops combined with their plan to integrate Intel CPUs into Nvidia's rack-scale platforms for AI data centers will represent an annual market opportunity worth up to $50 billion, says Nvidia's CEO. Nvidia CEO Jensen Huang said Thursday that the company's new deal with Intel will allow the two firms to create a "new class of integrated graphics laptops," representing what he called an "underserved" market that is "largely unaddressed by Nvidia today." This combined with their plan to integrate Intel CPUs into Nvidia's rack-scale AI platforms for data centers will represent an annual market opportunity worth up to $50 billion, Huang (pictured right) said in an afternoon webcast alongside Intel CEO Lip-Bu Tan (pictured left), hours after the two companies announced their "historic" partnership. [Related: Nvidia Channel Chief Calls RTX Pro Servers Its 'Largest Scale-Out Opportunity'] "In both cases, it expands the market for Intel very significantly and expands the market for Nvidia as well," Huang said. The two companies announced this morning that Nvidia plans to invest $5 billion in Intel common stock and jointly develop "multiple generations" of PC and data center products with the chipmaker. Intel's stock price was up by more than 22 percent while Nvidia's shares were up by more than 3.5 percent by Thursday mid-afternoon Eastern Time. Huang said Nvidia decided to buy a $5 billion equity stake in Intel "because we thought it was going to be such an incredible investment." He added elsewhere in the call that the Trump administration "had no involvement in this partnership at all." The Trump administration has played an outsized role for both companies. President Trump announced last month that the U.S. government reached an agreement to gain a 9.9 percent equity stake in Intel. Nvidia, on the other hand, has been working with the Trump administration as it seeks to gain new licenses to sell GPUs to customers in China. Nvidia, Intel To Enable 'New Class Of Integrated Graphics Laptops' The joint development efforts will center around using Nvidia's NVLink interconnect technology to "seamlessly" connect Intel's and Nvidia's respective chip architectures. In the webcast, Huang and Tan provided more details about the partnership and the products Intel and Nvidia will create together, but they did not commit to a timeline for when such offerings will become available to customers. For the PC market, Intel plans to create a "giant" system-on-chip that fuses a custom Intel x86-based CPU and Nvidia RTX GPU chiplet using NVLink to create a "new class of integrated graphics laptops that the world's never seen before," according to Huang. Tan said the joint product will also feature unified memory. Huang said this will represent a new market for Nvidia because the company has largely focused on providing discrete GPU for gaming laptops and mobile workstations in PC world. Laptops outside of those categories, on the other hand, mostly use integrated graphics, a "segment that has been largely unaddressed by Nvidia today," he added. "We're going to be quite a large supplier of GPU chiplets into Intel x86 SoCs," Huang said. Tan did not say what impact this will have on Intel's Arc GPU technology, which the company has used to power integrated graphics for chips like the Core Ultra 200 series. The chipmaker has been a long-term provider of integrated graphics for laptops and desktops. Nvidia To Enable x86-Based Rack-Scale AI Platforms For data centers, Intel plans to design a custom x86-based CPU that can integrate directly into Nvidia's rack-scale platforms like the NVL72, which enables high-speed communication between 72 GPUs and the host CPUs using NVLink to allow them to act if they're "one giant computer," according to Huang. "In the future, we will buy x86 CPUs from Intel, and we would fuse it with NVLink into our rack-scale system, so we're going to become a very large customer of Intel CPUs," he said. Nvidia previously used NVLink exclusively to enable super-fast connections between its GPUs and its Arm-based CPUs in products like the GB200 NVL72 rack-scale platform. The company developed the technology in large part to provide faster chip-to-chip communication and enable other capabilities in contrast to what is possible with the PCIe standard. But that changed in May when Nvidia announced that it is opening up NVLink for other companies to connect their CPUs with Nvidia GPUs (or conversely, their accelerator chips with Nvidia CPUs) using the interconnect technology. At the time, Nvidia said it was working with Fujitsu and Qualcomm, whose Arm-based CPUs can be integrated with its GPUs using NVLink for rack-scale platforms. While Huang said Nvidia remains "fully committed" to its road map for Arm-based products and added that the company has "lots of customers for Arm," the new rack-scale platforms it will build using Intel CPUs will be aimed enterprise customers who are still running on the x86 instruction set architecture and not Arm. "The vast majority of the world's enterprises [are] still x86-based. They now have state-of-the-art AI infrastructure," he said. Tan did not say whether this design partnership will impact Intel's push to introduce a new AI accelerator chip meant for rack-scale platforms. "Nvidia is [the] clear leader in AI accelerated computing. Intel is the leader in the data center and client PC CPU. This collaboration brings all together for the best for the industry going forward," he said on the webcast. Huang, Tan Address Whether The Deal Will Boost Intel Foundry In response to questions about whether the deal will result in Nvidia becoming a customer of the Intel Foundry contract chip manufacturing business, Huang said the partnership is "100 percent focused" on the products it's designing with Intel. "We've always evaluated Intel's foundry technology, and we're going to continue to do that," he said. "But today this announcement is squarely focused on these custom CPUs." However, Huang said that they plan to use Intel's Foveros 3-D packaging technology to bring together the CPU and GPU inside the system-on-chip they're designing for laptops. "It's really a fabulous way of mixing and matching technology, and it's one of the reasons why we're going to be able to innovate so quickly and build these incredibly complex systems and deliver [them] as multi-chiplet systems packages," he said. The comments were made as Intel pushes to improve its foundry capabilities in a move to win over a significant customer that Tan has stated is necessary for the company to continue investing in leading-edge manufacturing capabilities in the future. Tan said he and Huang will decide whether these jointly developed products are right for Intel Foundry as opposed to Taiwanese foundry giant TSMC, which Nvidia uses to manufacture many of its products and Intel uses to fabricate some of its products. "We're going to continue driving our success on the process side and then win the customer [confidence] and trust [...] one step at a time," Tan said.

Here's How the NVIDIA-Intel Deal Could Shape the Future of Team Blue's Business & Why CEO Lip-Bu Tan May Have Pulled a Masterstroke Move

Intel just announced a significant investment deal with NVIDIA for its consumer and AI products, and for CEO Lip-Bu Tan, this might just mark the moment of a pivotal breakthrough. This is indeed an unexpected collaboration, and it is something that no one has seen coming, but it seems like NVIDIA is ready to embrace Intel and the x86 ecosystem that comes along with it into its internal tech stack. We have already reported on the specifics of the deal, but for a quick recap, NVIDIA will invest $5 billion into Intel's common stock, and both companies will collaborate on joint chip ventures which we'll discuss ahead. We will also dive into how this move could shape the future of Intel's business as well, hence the content ahead will be pretty interesting. NVIDIA-Intel Deal: How It Would Shape The Future of The x86 Ecosystem & Team Blue's Struggling Business One of the major highlights for the NVIDIA-Intel deal is the collaboration on an x86-based SoC that will feature NVIDIA's RTX GPU onboard, which will likely be targeted towards the PC segment. Now, the details by themselves are pretty slim, but if we look at the wider picture, we are aware that NVIDIA has been pushing towards developing an AI PC chip, in collaboration with the likes of MediaTek and ARM, but it seems like the x86 architecture might be the next choice for the product. Intel has long been dominant in the CPU business, producing power-efficient and high-performing SoCs. While the firm has been slacking in the desktop CPU segment for the past few years, Intel is still the leading entity in the x86 ecosystem. NVIDIA apparently plans to capitalize on this position by combining the best CPU architecture with the best GPU lineup to give an end product that excels in all performance segments. This seems to be the approach for NVIDIA now, and it is indeed validated by CEO Lip-Bu Tan's comments as well. Intel's x86 architecture has been foundational to modern computing for decades - and we are innovating across our portfolio to enable the workloads of the future. Intel's leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA's AI and accelerated computing leadership to enable new breakthroughs for the industry. We don't know how the PC chip could look like, but since both companies are known to be on their 'top game' when it comes to consumer computing products, the SoC would likely be one of the leading options out there, but we'll have to wait and see. Did the Trump Administration Play a Role In the NVIDIA-Intel Deal? The Short Answer: Yes & No After the news broke out, there was a narrative that the Trump administration might have played a role in the NVIDIA-Intel deal, but based on the press releases by both Intel and NVIDIA, such information hasn't been disclosed. But a key point to note here is that President Trump has backed Intel's operations by investing $8.9 billion in the firm's common stock, which means that the administration is confident that Intel could contribute towards the American cause. There's no doubt that the NVIDIA-Intel deal may be influenced by how the current US administration has instead 'sided' towards Team Blue, and this is just an opinion for now, and not an official statement. We know that President Trump likes 'micro-managing' businesses, and an Intel partnership would certainly elevate the status of NVIDIA in the eyes of the current government, leading to better and more extensive relations. So overall, the narrative that USG had a role to play in the deal isn't there for now. After this deal, Intel has recently secured funding from three different entities, including the USG, SoftBank, and NVIDIA, which will definitely boost the company's revenue situation. The $8.9 billion from the Trump administration, the $2 billion from SoftBank, and the $5 billion from Jensen & Co. leads to around $16 billion in cash flows in just a few weeks, and this would be a huge boost to the firm's operations. What's The Future of ARM Within NVIDIA's Camp Now That x86 Has Managed To Take a Spot? Another confusion within the audience is how the ARM ecosystem will co-exist with x86, now that NVIDIA has announced the decision to develop "NVIDIA-custom x86 CPUs" for Team Green's AI platform. Well, the concern is indeed valid, since ARM has been the primary driver for Grace CPUs, up till Vera Rubin, and now that x86 has been involved, here's how we can see the partnership pan out. Intel offers a dedicated data center CPU lineup under its 'Xeon' offerings, which means that making custom SoCs for NVIDIA would collide with their server CPU market as well, which is already heavily influenced by AMD. But, here's what is interesting. Intel had already announced the intentions to tap into the custom chip business, following the recent structuring moves, and more importantly, the company witnessing integration from NVIDIA might be a much bigger venture than their own DC revenue from Xeon CPUs, since we know how widespread the adoption of NVIDIA's rack-scale solution is. For ARM, this is a 'conflict of interest', and one of the ways NVIDIA would mitigate it is by offering customers the option of going with x86 vs ARM, which means totally separate lineups. And, since Intel will be using NVIDIA's NVLink instead of a PCIe-based platform for inter-communication in rack-scale systems, we can expect the presence of the x86 architecture to be a lot more aggressive in terms of performance. And, since ARM is a trusted platform, I would say the situation is a win-win for both firms. Is There a Prospect For NVIDIA To Adopt Intel's 14A/18A Nodes, Alongside TSMC Processes? The idea that NVIDIA could source semiconductors from Intel isn't far-fetched. Interestingly, Intel mentions in its blog post that it will use "process technology, manufacturing and advanced packaging capabilities" for NVIDIA's accelerated AI platform. But, a caveat here is that Team Blue has disclosed that external adoption entirely depends upon how internal products turn out, such as Panther Lake, Clearwater Forest and Nova Lake, which means that the first step here isn't to think about external customers, rather Intel's in-house products. There was a rumor that NVIDIA was pursuing Intel Foundry for their chip needs, with sources claiming it as a 'way of diversifying' away from TSMC, but we haven't seen any major developments until now. We cannot entirely rule out a partnership for now, but based on the past, Intel needs to nail its processes in terms of yield rates and production capacities to secure integration from external customers like NVIDIA. But, the prospect will always be there, since Team Green is out in the market for better process nodes, pricing and production capacities. For now, NVIDIA is heavily reliant on TSMC for its process needs, and is also rumored to be sourcing the Taiwan giant's A16 node for its Feynman lineup, but a chip deal with Intel could also pan out, and hopefully, we'll see a development soon. NVIDIA-Intel Deal: A Massive "Sigh of Relief" For The American Chipmaker At the time of writing this post, Intel's shares are up 30% in the pre-market, which shows the shareholder confidence around the NVIDIA deal. Team Blue has been in a desperate position ever since CEO Tan took office, and optimism around the firm's operations has been declining with each passing day. However, with the NVIDIA collaboration, it seems like Intel might have pulled off one of the biggest moves during the entire history of the corporation.

Nvidia Bets Big on Intel With $5 Billion Stake and Chip Partnership

Nvidia-Intel pact pact represents a potential risk to Taiwan's TSMC Nvidia on Thursday said it will invest $5 billion (roughly Rs. 44,061 crore) in Intel, throwing its heft behind the struggling US chipmaker just weeks after the White House engineered an extraordinary deal for the US government to take a massive stake in the company. The stake instantly will make Nvidia one of Intel's largest shareholders, giving it roughly 4 percent or more of the company after new shares are issued to complete the deal. Nvidia's support represents a new opening for Intel after years of turnaround efforts at the famed US manufacturer failed to pay off, and it sent shares soaring 30 percent in premarket action. The company - once the chip industry's flagbearer that claimed to put the "silicon" in Silicon Valley - appointed a new CEO, Lip-Bu Tan, in March. He came under fire from US elected officials including US President Trump, who called for him to resign due to concerns about his connections with China. That led to a swiftly arranged meeting in Washington that ended with Intel's unusual arrangement to give the United States a 10 percent stake in the company. The pact includes a plan for Intel and Nvidia to jointly develop PC and data center chips, but crucially will not involve Intel's contract manufacturing business, known as a "foundry" in the chip industry, making chips for Nvidia. Most analysts believe that for Intel's foundry to survive, it would need to eventually win a large customer such as Nvidia, Apple, Qualcomm or Broadcom. Nvidia, whose must-have chips are powering a global artificial intelligence boom, said in a statement it will pay $23.28 per share for Intel common stock, a price slightly below the $24.90 at which Intel shares closed on Wednesday. However, that is higher than the $20.47 price per share that the United States government paid for an extraordinary 10 percent stake it took in Intel last month. "It's a reflection of Nvidia looking to diversify to an extent its investment within the US and as well to gain some brownie points with the US government," said Chris Beauchamp, chief market analyst at IG Group in London. The pact represents a potential risk to Taiwan's TSMC. TSMC currently manufactures Nvidia's flagship processors, business that the world's most valuable company could one day extend to Intel. AMD, which competes with Intel for supplying chips to data centers, also stands to lose thanks to Nvidia's backing. Shares of Nvidia rose more than 3 percent. AMD slipped nearly 4 percent, while US-listed shares of TSMC slid 2 percent. TSMC and AMD didn't immediately respond to a comment request Tan has vowed to make Intel's operation lean and build factory capacity only when there's demand to match it. The deal adds to a growing reserve of capital that Intel has accumulated weeks after it announced a $2 billion investment from Softbank and received $5.7 billion from the U.S. government. David Zinsner, Intel's chief financial officer, told investors at a Deutsche Bank conference last month that the company was in a "good cash position" and would not require much more capital until it saw significant demand for 14A, a next-generation manufacturing process that it expects to invest heavily in building. Speedy Links Under the deal announced Thursday, Intel is planning to design custom data center central processors that Nvidia will package with its AI chips, known as GPUs. A proprietary Nvidia technology will let the Intel and Nvidia chips communicate at higher speeds than before. Those speedy links are a key differentiator in the AI market because many chips must be strung together to act as one to chew through massive amounts of data. At present, Nvidia's best-selling AI servers with those speedy links are only available using Nvidia's own chips, but the deal would now put Intel on equal footing, giving it a chance to make money off each Nvidia server. The combined Nvidia-Intel chips could provide a major competitive challenge to AMD, which is developing its own AI servers, and Broadcom, which also has chip-to-chip connection technology and helps companies such as Google develop AI chips. "Anything that NVIDIA decides to endorse just by association will make that stock of Intel appear attractive because it implies that Nvidia sees value in Intel," said Peter Andersen, founder of Andersen Capital Management in Boston. Broadcom did not immediately respond to a request for comment. For consumer markets, Nvidia will provide Intel with a custom graphics chip that Intel can package with its PC central processors with the same speedy links, potentially giving it an edge against rivals such as AMD. While Intel's x86 computing architecture has lost ground in both data centers and PCs to chips with technology from Arm Ltd, it still has majority market share. "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 a press release. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." The two companies did not disclose financial terms of their technical collaboration but said they would make "multiple generations" of future products. Nvidia and Intel officials described the collaboration as a commercial arrangement under which they will provide chips to one another to create products and said there was no licensing component to the deal. The companies declined to give a date for when the first joint products will come to market but said that their product plans prior to the joint deal have not changed. Nvidia in recent years has entered both the PC central processor market and the data center central processor market. Intel meanwhile has tried to sell several AI chips that compete with Nvidia and has said it plans to develop an AI data center server that would compete with Nvidia.

Nvidia Bets Big on Intel With $5B Investment

Intel shares soared in premarket trading Thursday following the news. Nvidia shares also climbed. Nvidia (NVDA) is investing $5 billion in Intel and will jointly develop chips and data centers, the companies announced Thursday. Nvidia, the chip designer at the heart of the AI boom, said it will buy Intel common stock at $23.28 a share -- around 7% below where they closed yesterday. The news of the tie-up between the two American chipmakers sent shares of government-backed Intel soaring 28% in premarket trading, while Nvidia shares climbed 3%. Intel will build custom data center chips that Nvidia will "integrate into its AI infrastructure platforms and offer to the market," and also make chips that will integrate "Nvidia RTX GPU chiplets," the companies said. Nvidia CEO Jensen Huang called it a "historic collaboration" that fuses two "world-class platforms," adding "together, we will expand our ecosystems and lay the foundation for the next era of computing." Intel CEO Lip-Bu Tan, meanwhile, said the company's "leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA's AI and accelerated computing leadership." Once a leading chipmaker, Intel has fallen behind rivals like chip manufacturer TSMC (TSM) and struggled to keep up with technological advancements in the space. The Trump administration is pushing to make the company a national champion in the production of AI chips, however, and last month said it would take a 10% stake in the company.

Why Nvidia's $5 Billion Stake in Intel Could Extend Its Dominance in AI Chips | The Motley Fool

The deal surprised many investors given Nvidia has amassed such a dominant lead in key growth areas like artificial intelligence (AI). And notably, the $5 billion price tag is relative chump change for Nvidia. That figure represents just 0.1% of Nvidia's current market cap. But when you dig deeper, the partnership between Intel and Nvidia makes a lot of sense. In fact, there are two promising reasons the deal could help solidify Nvidia's leading market share for AI chips. Let's take a direct look at the details of this partnership, beginning with some comments from Nvidia CEO Jensen Huang to understand what exactly is going on. "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," Huang said in a news release. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." While there is some technical jargon in these comments, they get to the heart of what this partnership is all about. Nvidia has had a heavy lead in AI chips for years. Many estimates peg the company with a 90% market share in this category. Intel, meanwhile, still holds a heavy lead in CPU market share. Its chips in that category control around 60% of the market. Around 50% of desktops run on Intel chips, plus 73% of laptops and 76% of servers. It is this server market share that Nvidia is most interested in. Since 2021, Intel stock lost around 50% of its value. Nvidia shares, meanwhile, gained more than 1,000%. Why such a difference in performance if both companies have high market shares in their respective categories? According to the Center for Security and Emerging Technology at Georgetown University, "The success of modern AI techniques relies on computation on a scale unimaginable even a few years ago." The AI chips of today, the center adds, "are tens or even thousands of times faster and more efficient than CPUs for training and inference of AI algorithms." The AI market is expected to grow by 30% or more per year for decades to come. With early investment, Nvidia was able to dominate this huge growth market, which demands parallel processors designed to run thousands of simultaneous operations over more general-purpose processors that Intel produces. Still, the AI industry requires both AI-focused GPU and CPU chips to function. CPU chips can excel in low-latency tasks where efficiency is a priority. And data centers around the world leverage both CPUs and GPUs to operate. The partnership between Intel and Nvidia essentially commits Intel to build custom x86 CPUs for Nvidia's AI infrastructure platforms. It also requires Nvidia to integrate its GPUs more directly into Intel's client PCs. The result is a mutually embedded ecosystem that can improve the performance and efficiency of both companies' products. It's why Huang described the partnership as a "fusion of two world-class platforms" that will help both companies expand their ecosystems. This partnership ensures two things. First, Nvidia will now have a tighter grip on its hardware stack. As the company proved with its CUDA developer platform, Nvidia is very skilled at integrating various components to maximize performance and vendor lock-in. More control over the CPU side of the stack gives Nvidia even more ability to advance its tech stack in ways that competitors can't match -- at least for now. Intel, meanwhile, will now be able to integrate Nvidia's leading AI capabilities in ways its competitors will find difficult to match. CPUs are already being designed with dedicated AI cores, and the combination of Intel's and Nvidia's technology should make Intel's chips more appealing to its end markets, especially data centers looking to add more Nvidia chips. Intel CPUs now become the clear complementary solution. Nvidia's $5 billion investment isn't the key mover in this story. Instead, it's the intertwining of each company's tech stack that will provide the most long-term benefits.

Intel stock on fire after Jensen Huang-led Nvidia's $5 billion rescue -- here's what both companies plan to do

Intc stock: Intel stock surged more than 30% in pre-market trading after Nvidia said that it would invest $5 billion in the chip maker. Nvidia said that it will invest $5 billion in Intel's common stock at a purchase price of $23.28 per share to "jointly develop multiple generations of custom data center and PC products that accelerate applications and workloads across hyperscale, enterprise and consumer markets." The collabaration is for connecting Nvidia and Intel architectures using "NVIDIA NVLink", which is integrating the strengths of Nvidia's AI and accelerated computing with Intel's CPU technologies and x86 ecosystem to deliver "cutting-edge solutions for customers," as per the Nvidia's press release. Nvidia said that for data centers, Intel will build NVIDIA-custom x86 CPUs and the AI chipmaker will integrate into its AI infrastructure platforms and offer to the market. While for the personal computing sector, Intel will build the x86 system-on-chips (SOCs) that will integrate Nvidia RTX GPU chiplets and the new x86 RTX SOCs will power a wide range of PCs that demand integration of CPUs and GPUs. ALSO READ: Fed cuts rate today: How it affects borrowers with credit cards, auto loans & student loans? Nvidia CEO Jensen Huang said, "AI is powering a new industrial revolution and reinventing every layer of the computing stack -- from silicon to systems to software. At the heart of this reinvention is NVIDIA's CUDA architecture," adding, "This historic collaboration tightly couples NVIDIA's AI and accelerated computing stack with Intel's CPUs and the vast x86 ecosystem," as quoted in the press release. ALSO READ: Forget rate cuts -- this Fed move could be the real jackpot for job hunters Intel CEO Lip-Bu Tan said that, "Intel's leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA's AI and accelerated computing leadership to enable new breakthroughs for the industry," adding, "We appreciate the confidence Jensen and the NVIDIA team have placed in us with their investment and look forward to the work ahead as we innovate for customers and grow our business," as quoted in the press release. Peter Andersen, founder of Andersen Capital Management in Boston, pointed out that, "Anything that NVIDIA decides to endorse just by association will make that stock of Intel appear attractive because it implies that Nvidia sees value in Intel," as quoted by Reuters. Why is Nvidia investing $5 billion in Intel? Nvidia sees strategic value in working closely with Intel to develop new chips that combine their strengths in AI and CPUs. How will this investment affect Intel's stock? Intel's stock surged over 30% in pre-market trading following the announcement, reflecting investor optimism.

Intel Strikes Back With Massive $5.0B Nvidia Deal (NASDAQ:INTC)

The deal positions INTC as a renewed AI contender, with further upside possible if the partnership delivers on next-generation Data Center chips. AI GPU maker Nvidia (NVDA) announced on Thursday that it would invest $5.0B into shares of struggling chip-maker Intel (NASDAQ:INTC) and collaborate with the company in terms of the development of I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon. Analyst's Disclosure:I/we have a beneficial long position in the shares of NVDA, AMD, INTC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Intel and Nvidia announce stunning plans to combine their CPU and GPU products for both consumer PCs and AI servers, with Nvidia taking a $5 billion stake in Intel

Cats and dogs living together. A man eating his own head. Intel and Nvidia teaming up to make APUs. I have now, officially, seen everything. That's right, peeps, Intel and Nvidia have released a joint statement revealing plans to work together to build new computing products based on Intel's x86 CPUs and Nvidia's GPUs. Oh, and Nvidia is investing $5 billion in Intel. Hold that thought. The announcement says the partnership will span both enterprise-class AI products and consumer PCs. It's the latter we're most interested in, of course, so here's what the statement has to say about that specifically: "For personal computing, Intel will build and offer to the market x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets. These new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs." And that really is it, barring some platitudes rolled out by Intel and Nvidia's CEOs, Lip Bu Tan and Jensen Huang respectively. So, what are we to make of it all? It's a pretty extraordinary announcement and it almost certainly wouldn't be happening if Intel wasn't in such deep trouble of late. The $5 billion Nvidia is injecting into Intel in the form of a common stock at a purchase price of $23.28 per share speaks, no shouts, to that. So, the first observation to note is that whatever the CEOs say, this is not a partnership of equals. Intel needs cash and it needs customers. This deal gives them both. The customer bit comes in the form of building "NVIDIA-custom x86 CPUs that NVIDIA will integrate into its AI infrastructure platforms" on the enterprise side of the equation. You can see how that makes sense for both parties. The consumer PC bit is a little harder to gauge. One obvious target is laptops. CPU-GPU products with an Intel SoC packaged with an Nvidia GPU die definitely makes sense for laptops. Actually, Intel has done that before but with AMD, even if Kaby Lake-G, as it was known, made little impact on the market, and never actually appeared in laptops themselves. This announcement also hardly seems like a vote of confidence for Intel's own Arc graphics, though explicit mention of "Nvidia chiplets" seems to imply fairly high performance graphics as opposed to basic integrated GPUs, which Intel will still need for its CPUs. So, perhaps Arc will live on in that form. Beyond that, it gets a little speculative. Speaking of AMD, there are parallels with AMD's partnership with Microsoft on a family of SoCs for Xbox, handheld gaming PCs and beyond. An Intel-Nvidia alliance could certainly come up with something to take on AMD's plans there head on. Were I to speculate, I'd say this feels like a hedge against both excessive AMD dominance in the traditional PC and gaming console space, plus some forward thinking from Nvidia should the AI boom dampen down. Nvidia certainly wouldn't want to be left just selling a few GPUs to gamers should AI GPU sales nosedive. Being much more instrumental to the broader PC platform would make a lot of sense and a partnership with Intel that also includes an equity stake is a clear step in that direction. One of the complications here involves the arcane licensing stipulations around the x86 ISA. As things stand and as we understand it, the cross licensing arrangement with AMD re x86 means that it wouldn't be possible for Nvidia to simply buy Intel and then make x86 CPUs. Intel has to remain an ostensibly independent entity to maintain its x86 license, as does AMD. No doubt there are financial engineers at investment banks who would relish the opportunity to structure a deal where Intel remains notionally independent but in practice under Nvidia's control. And this announcement could be a step in that direction. On the other hand, it could just be that Nvidia sees it as in their interest to keep Intel alive. Microsoft took a similar view many years ago when it chucked Apple some cash to keep it afloat with a view to avoiding regulators viewing Microsoft as a monopoly. Nvidia might like to see Intel survive for similar reasons, especially in the current geopolitical environment where two US giants teaming up like this would presumably be looked upon favourably by the current White House administration. Of course, maybe Nvidia just wants to ensure a counterbalance against AMD. If Intel were to die, AMD wold dominate x86 and the PC. Nvidia surely doesn't want that eventuality, so keeping Intel afloat definitely has at least some advantages for Nvidia. Anywho, this is all very early days for this announcement. There's a press conference with CEOs Lip Bu Tan and Jensen Huang later today which we'll be watching very carefully indeed.

Why Is Intel Stock Skyrocketing Thursday? - NVIDIA (NASDAQ:NVDA), Intel (NASDAQ:INTC)

Intel INTC stock surged on Thursday after unveiling a sweeping partnership with Nvidia NVDA to co-develop custom chips and next-generation systems, a breakthrough that thrusts the long-struggling chipmaker into the center of the artificial intelligence boom and signals a new front in the global race for computing dominance. Wedbush analyst Dan Ives framed Nvidia and Intel's collaboration as a game-changing moment that pulls Intel "front and center" into the artificial intelligence race. The analyst argued the deal, paired with Washington's recent 10% government stake, marks a golden streak for Intel after years of investor frustration. Also Read: Intel Gets Lifeline: Trump Administration Takes 10% Stake To Rescue Struggling Foundry Unit He noted that Intel will build Nvidia-custom CPUs (central processing units) for data centers, which Nvidia will integrate into its AI infrastructure platforms. Intel will also design and sell a system-on-chip (SoC) incorporating Nvidia RTX graphics processing unit (GPU) chiplets, combining high-performance CPUs and GPUs for PCs. By tightly linking Nvidia's AI and accelerated computing stack with Intel's CPU and x86 ecosystem, the companies are laying the groundwork for the next wave of computing, Ives noted. The analyst noted that this partnership strengthens U.S. leadership in the AI arms race against China and transforms Intel from a laggard into a catalyst. With AI infrastructure spending likely to reach $3-4 trillion by 2030, he stressed that Nvidia continues to dominate the chip landscape while competitors cough out "rent" to keep up. Ives concluded that the alliance does not alter either company's individual growth strategies but positions both to capture outsized demand as sovereigns and enterprises scramble for the world's most advanced chips. Price Actions: Intel shares were trading higher by 29.36% to $32.21 at the time of publication on Thursday. NVDA was up 3.47%. Read Next: Nvidia's China Chip Boom Faces Threat As Beijing Pushes For Homegrown AI Image via Shutterstock INTCIntel Corp$32.1929.3%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum59.19Growth16.48QualityN/AValueN/APrice TrendShortMediumLongOverviewNVDANVIDIA Corp$176.043.38%Market News and Data brought to you by Benzinga APIs

Intel Stock Skyrockets After Nvidia Vows To Invest $5B In Chipmaker In Mega Design Deal

The two companies jointly announced the agreement, with Nvidia CEO Jensen Huang calling the deal a 'historic collaboration' that '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.' Intel's stock price skyrocketed in pre-market trading Thursday after announcing a groundbreaking deal in the morning with Nvidia, which plans to invest $5 billion in Intel common stock and jointly develop "multiple generations" of products with the chipmaker. Intel shares were up more than 29 percent in pre-market trading as of around 8:00 a.m. Eastern Time. [Related: Nvidia Channel Chief Calls RTX Pro Servers Its 'Largest Scale-Out Opportunity'] The two companies jointly announced the agreement, with Nvidia CEO Jensen Huang calling the deal a "historic collaboration" that "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." "Together, we will expand our ecosystems and lay the foundation for the next era of computing," he said in a statement. Intel CEO Lip-Bu Tan said that his company's computing platforms, combined with its process technology, manufacturing and advanced packaging capabilities, "will complement Nvidia's AI and accelerated computing leadership to enable new breakthroughs for the industry." "We appreciate the confidence Jensen and the Nvidia team have placed in us with their investment and look forward to the work ahead as we innovate for customers and grow our business," he said in his statement. The joint development efforts will center around using Nvidia's NVLink interconnect technology to "seamlessly" connect Intel's and Nvidia's respective chip architectures, according to the two companies. This will result in x86-based CPUs from Intel that will be customized for integration within Nvidia's AI infrastructure platforms for the data center market. For the PC market, Intel will develop x86-based system-on-chips that integrate Nvidia RTX GPU chiplets to "power a wide range of PCs that demand integration of world-class CPUs and GPUs." This is a breaking news story. It will be updated.

NVIDIA To Invest $5 Billion Into Intel In a Blockbuster Deal; Team Blue To Build New x86 SoCs Featuring NVIDIA's RTX GPUs Onboard

NVIDIA has announced a $5 billion deal with Intel, and both firms will collaborate on joint chip development that will focus on consumer and AI computing segments. This is a breakthrough for Intel, since a partnership with NVIDIA means that Team Blue will see confidence from the markets in its products, especially those that focus on the x86 architecture. According to a blog post shared by NVIDIA, it is revealed that Intel will build custom x86 chips for NVIDIA that feature RTX GPUs onboard, which means we are looking at custom CPU solutions coming from Team Green in collaborating with Intel. More importantly, the announcement also focuses on building NVIDIA's x86-CPUs for integration in AI clusters. After getting the required regulatory approval, NVIDIA will invest $5 billion in Intel's common stock at $23.28 per share. The partnership comes after SoftBank and the Trump administration focused on Team Blue, and NVIDIA's attention means there is an inclination towards the American chipmaker. For data centers, Intel will build NVIDIA-custom x86 CPUs that NVIDIA will integrate into its AI infrastructure platforms and offer to the market. For personal computing, Intel will build and offer to the market x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets. These new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs. We are still unaware of the specifics of the above-mentioned products, but it seems like a joint venture in computing products is the focus here. Despite Intel's sluggish years with its x86 products, the firm is still the dominant adopter of the architecture, and since NVIDIA is one of the leaders in the graphics segment, a combined product could prove to be phenomenal. We will update the report once details emerge.

Why Did Intel Stock Skyrocket 27% This Week? | The Motley Fool

The chipmaker's stock exploded this week after Nvidia announced a $5 billion investment and "multigeneration" partnership agreement with Intel. On Thursday, Nvidia said it is investing $5 billion into the struggling company at a purchase price of $23.28 a share. Under the partnership terms, Intel will make custom CPUs that Nvidia will use in its AI data center platforms. Intel will also make use of Nvidia's technology to enhance its PC offerings. Intel's CEO, Lip-Bu Tan, said the move will help the company in its turnaround efforts, allowing it to "go to market to win." A key question remains on what the deal will mean for Intel's foundry business. Nvidia's Jensen Huang told investors that Taiwan Semiconductor Manufacturing Company (TSMC) will remain its primary fabricator. However, it's possible that Nvidia could still make use of Intel's manufacturing capabilities for certain products. This is a critical time for Intel. The dominant U.S. chipmaker for years, the company fell behind in the age of generative AI. Its top and bottom lines have taken a severe beating, and the company has gone through significant restructuring and major layoffs in an attempt to stabilize its balance sheet. While this investment is certainly encouraging, there are still some questions, especially around Intel's manufacturing. This could be a major step in Intel's revival, or it could be an early step in Intel being stripped for parts. One Wall Street manager said the company could become "a shadow of its former self" with a fate similar to that of Xerox. I'm cautiously optimistic. For investors comfortable with risk, Intel is a good pick.

Nvidia to invest $5 bil. in Intel; companies will work together on AI infrastructure and PCs - The Korea Times

NEW YORK (AP) -- Nvidia, the world's leading chipmaker, announced on Thursday that it's investing $5 billion in Intel and it will collaborate with the struggling semiconductor company on products. Nvidia and Intel will team up to work on custom data centers that form the backbone of artificial intelligence (AI) infrastructure as well as personal computer products, Nvidia said in a press release. Nvidia said it will spend $5 billion to buy Intel common stock at $23.28 a share. The investment is subject to regulatory approvals. "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. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." The two companies said they will work on "seamlessly connecting" their architectures. For data centers, Intel will make custom chips that Nvidia will use in its AI infrastructure platforms. while for PCs products, Intel will build chips that integrate Nvidia technology. The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that's propelled Nvidia into the world's most valuable company. Intel lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, and expects to slash its workforce by a quarter by the end of 2025. Nvidia, meanwhile, has soared because its specialized chips are underpinning the artificial intelligence boom. The chips, known as graphics processing units, are highly effective at developing powerful AI systems. In premarket trading, Intel shares jumped 30 percent. Nvidia shares added 3 percent.

Nvidia, Intel sign blockbuster deal to co-develop chips; Nvidia to take $5B stake in Intel (INTC:NASDAQ)

Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC) announced a blockbuster deal on Thursday to co-develop PC and data center chips. Simultaneously, Nvidia said it would take a $5B stake in Intel. Nvidia shares rose 2.2% in premarket trading, while Intel soared 32%. If Intel shares open at that level, it would be the highest in over a year. As part of the deal, the two companies will use Nvidia's NVLink, bringing Nvidia's artificial intelligence and accelerated computing strength and Intel's x86 architecture. Intel will build Nvidia-custom x86 CPUs for the data center, and Intel will build and offer x86 system-on-chips that integrate into Nvidia's RTX GPUs. The RTX system-on-chips will be aimed at the PC market. In addition to the deal, Nvidia said it would invest $5B in Intel's common stock at a price of $23.28 per share. The investment is subject to customary closing conditions, including required regulatory approvals, the companies said. "AI is powering a new industrial revolution and reinventing every layer of the computing stack -- from silicon to systems to software. At the heart of this reinvention is NVIDIA's CUDA architecture," said NVIDIA founder and CEO Jensen Huang in a statement. "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. Together, we will expand our ecosystems and lay the foundation for the next era of computing." "Intel's x86 architecture has been foundational to modern computing for decades -- and we are innovating across our portfolio to enable the workloads of the future," said Lip-Bu Tan, CEO of Intel. "Intel's leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA's AI and accelerated computing leadership to enable new breakthroughs for the industry. We appreciate the confidence Jensen and the NVIDIA team have placed in us with their investment and look forward to the work ahead as we innovate for customers and grow our business." The two companies will hold a press conference at 1 p.m. EST to discuss the deal. This is breaking news... More on Intel and Nvidia Today's chaos. Tomorrow's opportunity Seeking Alpha helps you make sense of the headlines. New! Get unlimited breaking stock news for free -- so you can stay on track for a stronger financial future.

Intel shares soar 30% in pre-market trade on Nvidia's $5 bn investment boost, strategic product collaboration

Intel shares soared over 30% in pre-market trade after announcing a $5 billion investment from Nvidia and a landmark collaboration to co-develop custom data center CPUs and x86 RTX SOCs for PCs, integrating NVIDIA's AI and Intel's CPU strengths. Shares of Intel Corporation surged over 30% on Thursday in the pre-market session after the company announced that it will collaborate with chipmaker Nvidia to jointly develop multiple generations of custom data center and PC products that would accelerate applications and workloads across hyperscale, enterprise and consumer markets. Nvidia will invest $5 billion in Intel's common stock at a purchase price of $23.28 per share. The investment is subject to customary closing conditions, including required regulatory approvals. Intel Corporation shares were hovering around $31.87 on the Nasdaq around 7:44 AM ET (5:15 pm India time). The shares had settled at $24.90 on Wednesday, down 1.5%. Ahead of the US stock market opening today, the company made this announcement in its filing to the exchanges. Intel said that both companies will focus on seamlessly connecting NVIDIA and Intel architectures using NVIDIA NVLink -- integrating the strengths of NVIDIA's AI and accelerated computing with Intel's leading CPU technologies and x86 ecosystem to deliver cutting-edge solutions for customers. For data centers, Intel will build NVIDIA-custom x86 CPUs that NVIDIA will integrate into its AI infrastructure platforms and offer to the market. For personal computing, Intel will build and offer to the market x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets, the filing said, adding that these new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs. Commenting on the development, Nvidia founder and CEO Jensen Huang said that AI is powering a new industrial revolution and reinventing every layer of the computing stack -- from silicon to systems to software and at the heart of this reinvention is Nvidia's CUDA architecture. "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. Together, we will expand our ecosystems and lay the foundation for the next era of computing," the company filing said quoting Huang. Meanwhile, Lip-Bu Tan, CEO of Intel said that Intel's x86 architecture has been foundational to modern computing for decades -- and the company is innovating across our portfolio to enable the workloads of the future. "Intel's leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA's AI and accelerated computing leadership to enable new breakthroughs for the industry. We appreciate the confidence Jensen and the NVIDIA team have placed in us with their investment and look forward to the work ahead as we innovate for customers and grow our business," Tan said. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Nvidia makes $5B bet on struggling Intel with stake, chip deal after...

Nvidia said Thursday it would invest $5 billion in Intel, throwing its heft behind the struggling chipmaker just weeks after the White House engineered an extraordinary deal for the federal government to take a massive stake in the company. The stake will instantly make Nvidia one of Intel's largest shareholders, giving it roughly 4% of the company after new shares are issued to complete the deal. Nvidia's support represents a new opening for Intel after years of turnaround efforts failed to pay off, and it triggered a jump in the manufacturer's shares. The company - once the chip industry's flag bearer that claimed to put the "silicon" in Silicon Valley - appointed a new CEO, Lip-Bu Tan, in March. He quickly came under fire from US elected officials, including President Trump, who called for him to resign due to concerns about his connections with China. That led to a swiftly arranged meeting in Washington that ended with Intel's unusual arrangement to give the US a 10% stake in the company. The new pact includes a plan for Intel and Nvidia to jointly develop PC and data center chips, but crucially will not involve Intel's contract manufacturing business, known as a "foundry" in the chip industry, making chips for Nvidia. Most analysts believe that for Intel's foundry to survive, it would need to win a large customer such as Nvidia, Apple, Qualcomm or Broadcom. Nvidia, whose must-have chips are powering a global artificial intelligence boom, said it would pay $23.28 per share for Intel common stock, slightly below the $24.90 Wednesday closing price but higher than the $20.47 price the US government paid. The companies did not disclose the financial terms of their collaboration but said they would make "multiple generations" of future products. Nvidia and Intel officials described the collaboration as a commercial arrangement under which they will provide chips to one another to create products, with no licensing component. Nvidia has struggled to sell its H20 chips in China, with the company trying to navigate demands from Washington and Beijing at the same time. In mid-August, Trump engineered a deal that granted Nvidia licenses to sell H20 chips to China in exchange for a 15% cut of those sales, but Nvidia has said it has not sent any H20 chips to China. While the deal does not do much to help Nvidia's issues in China, analysts noted that it carries political upside in the US. Nvidia CEO Jensen Huang was seen among other business leaders with Trump during the president's state visit to the United Kingdom on Thursday. "This move aligns with US policy and could help ease restrictions on selling advanced chips to China," said Matt Britzman, senior equity analyst at Hargreaves Lansdown. The deal adds to Intel's growing reserve of capital, following a $2 billion investment from Softbank and the $5.7 billion investment from the US government. CEO Tan has vowed to make Intel's operations lean and build factory capacity only when there's demand to match it. The pact represents a potential risk to Taiwan's TSMC. TSMC currently manufactures Nvidia's flagship processors, a business the world's most valuable company could one day extend to Intel. AMD, which competes with Intel for supplying chips to data centers, also stands to lose thanks to Nvidia's backing. Intel shares were up about 26% at open and were trading at $31.33 in early trading. AMD shares were down 4.6%, while Broadcom shares rose 1.3%. Nvidia shares were up 2%. TSMC and AMD did not immediately respond to a request for comment. "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," said David Wagner, portfolio manager at Aptus Capital Advisors. Under the terms of the deal, Intel will design custom data center central processors Nvidia plans to package with its AI chips, known as GPUs. A proprietary Nvidia technology will let the Intel and Nvidia chips communicate at higher speeds than before. Speedy links are a key differentiator in the AI market because many chips must be strung together to act as one to chew through massive amounts of data. Currently, Nvidia's best-selling AI servers with those links are only available using Nvidia's own chips; this deal would put Intel on equal footing, giving it a chance to make money off each Nvidia server. The combined Nvidia-Intel chips could provide a major competitive challenge to AMD, which is developing its own AI servers, and Broadcom, which also has chip-to-chip connection technology and helps companies such as Google develop AI chips. Broadcom did not immediately respond to a request for comment. For consumer markets, Nvidia will provide Intel with a custom graphics chip that Intel can package with its PC central processors with the same speedy links, potentially giving it an edge against rivals such as AMD. While Intel's x86 computing architecture has lost ground in both data centers and PCs to chips with technology from Arm Ltd, it still has a majority market share. The companies did not say when the first joint products would come to market, but said that their product plans prior to the joint deal had not changed. Nvidia in recent years has entered both the PC central processor market and the data center central processor market. Intel has tried to sell several AI chips that compete with Nvidia and has said it plans to develop an AI data center server that would compete with Nvidia.

Intel Stock Jumps 30% After NVIDIA Stake and Multi-Gen Chip Collaboration

The two companies unveiled a multi-generation collaboration that blends NVIDIA's AI acceleration and GPUs with Intel's x86 CPUs. Intel will manufacture custom x86 processors for NVIDIA's AI platforms and introduce system-on-chips (SoCs) that integrate RTX GPU chiplets. Both companies emphasized the role of NVLink interconnect technology in bridging their platforms. Intel CEO Lip-Bu Tan said the deal is to 'enable the workloads of the future.' On the other hand, NVIDIA CEO Jensen Huang talked about it as a fusion of two world-class ecosystems.

Nvidia bets big on Intel with US$5 billion stake and chip partnership

SAN FRANCISCO, -- Nvidia on Thursday said it will invest US$5 billion in Intel, throwing its heft behind the struggling U.S. chip foundry, but stopped short of giving Intel a crucial manufacturing deal. The pact, which also includes a plan for Intel and Nvidia to jointly develop PC and data center chips, represents a potential risk to Taiwan's TSMC. TSMC currently manufactures Nvidia's flagship processors, business that the world's most valuable company could one day extend to Intel. AMD AMD.O, which competes with Intel for supplying chips to data centers, also stands to lose thanks to Nvidia's backing. Shares of Intel surged more than 32 per cent in premarket trading, while Nvidia was up more than three per cent. AMD slipped nearly four per cent, while U.S.-listed shares of TSMC slid two per cent. Nvidia, whose must-have chips are powering a global artificial intelligence boom, said in a statement it will pay $23.28 per share for Intel common stock, a price slightly below the $24.90 at which Intel shares closed on Wednesday. However, that is higher than the $20.47 price per share that the United States government paid for an extraordinary 10 per cent stake it took in Intel last month. Nvidia will become one of Intel's largest shareholders, likely owning four per cent or more of the company after new shares are issued to complete the deal. Nvidia's support represents a new opening for Intel after years of turnaround efforts at the famed U.S. manufacturer failed to pay off. The company - once the chip industry's flagbearer that claimed to put the "silicon" in Silicon Valley - appointed a new CEO, Lip-Bu Tan, in March. Tan has vowed to make Intel's operation lean and build factory capacity only when there's demand to match it. Crucially, the deal will not involve Intel's contract manufacturing business, known as a "foundry" in the chip industry, making chips for Nvidia. Most analysts believe that for Intel's foundry to survive, it would need to eventually win a large customer such as Nvidia, Apple, Qualcomm or Broadcom. But the deal adds to a growing reserve of capital that Intel has accumulated weeks after it announced a $2 billion investment from Softbank and received $5.7 billion from the U.S. government. David Zinsner, Intel's chief financial officer, told investors at a Deutsche Bank conference last month that the company was in a "good cash position" and would not require much more capital until it saw significant demand for 14A, a next-generation manufacturing process that it expects to invest heavily in building. Under the deal announced Thursday, Intel is planning to design custom data center central processors that Nvidia will package with its artifical intelligence (AI) chips, known as GPUs. A proprietary Nvidia technology will let the Intel and Nvidia chips communicate at higher speeds than before. Those speedy links are a key differentiator in the AI market because many chips must be strung together to act as one to chew through massive amounts of data. At present, Nvidia's best-selling AI servers with those speedy links are only available using Nvidia's own chips, but the deal would now put Intel on equal footing, giving it a chance to make money off each Nvidia server. The combined Nvidia-Intel chips could provide a major competitive challenge to AMD, which is developing its own AI servers, and Broadcom, which also has chip-to-chip connection technology and helps companies such as Google develop AI chips. For consumer markets, Nvidia will provide Intel with a custom graphics chip that Intel can package with its PC central processors with the same speedy links, potentially giving it an edge against rivals such as AMD. While Intel's x86 computing architecture has lost ground in both data centers and PCs to chips with technology from Arm Ltd, it still has majority market share. "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 a press release. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." The two companies did not disclose financial terms of their technical collaboration but said they would make "multiple generations" of future products. Nvidia and Intel officials described the collaboration as a commercial arrangement under which they will provide chips to one another to create products and said there was no licensing component to the deal. The companies declined to give a date for when the first joint products will come to market but said that their product plans prior to the joint deal have not changed. Nvidia in recent years has entered both the PC central processor market and the data center central processor market. Intel meanwhile has tried to sell several AI chips that compete with Nvidia and has said it plans to develop an AI data center server that would compete with Nvidia.

Nvidia CEO Jensen Huang Just Delivered Fantastic News for Intel Investors | The Motley Fool

Over the past decade, Nvidia (NVDA 3.52%) has transformed from a niche chip designer serving gamers into the clear leader of the artificial intelligence (AI) era. At the center of this shift are its graphics processing units (GPUs) -- advanced chipsets that have become the backbone of generative AI. This pivot helped fuel a historic stock price run, marked by revenue growth, record profitability, and plenty of free cash flow. When companies generate substantial free cash flow, they generally have lots of options for putting that capital to use. Nvidia has been leaning heavily into product innovation -- expanding its GPU roadmap with next-generation chip architectures such as Blackwell, Blackwell Ultra, and Rubin. Management has also recently authorized a $60 billion share repurchase program. Another option is to make strategic investments outside of Nvidia's core ecosystem. In this area, Nvidia has been fairly conservative. Aside from a 2024 partnership with GPU-as-a-service provider Nebius Group, the company's other transactions to date have been relatively specialized. While these investments add value, they fall short of the kind of transformative deal investors may be anticipating. The restraint is notable, given management's prior commentary about building mergers and acquisitions into the long-term playbook. That narrative shifted somewhat on Sept. 18, when Nvidia announced a $5 billion equity investment in Intel (INTC 22.81%). Given that Nvidia's prior outside holdings totaled only about $4.3 billion, this move is a clear acceleration of its capital deployment. Let's break down the mechanics of the deal and explore why this partnership is meaningful for each side. Nvidia and Intel's collaboration focuses on uniting their strengths in two domains: data centers and personal computing (PC). In the data center segment, Intel will design custom x86 CPUs tailored for Nvidia's AI infrastructure platforms. On the PC side, Intel will introduce x86 system-on-chips (SOCs) that incorporate Nvidia's RTX GPU chiplets -- a hybrid solution that marries industry-leading CPUs with world-class GPUs. At a strategic level, the significance of this deal is that it links Intel's historical dominance in the CPU market with Nvidia's leadership in accelerated AI workloads. Notably, the agreement does not grant Intel exclusivity as a foundry partner -- an area where the company remains overshadowed by Taiwan Semiconductor Manufacturing. While this is not an outright acquisition, the partnership is highly additive for both Nvidia and Intel. For Nvidia, the deal extends its reach deeper into the CPU ecosystem -- underscoring its position in end-to-end AI infrastructure. For Intel, the $5 billion investment delivers both capital and much-needed strategic validation at a time when the company is searching for momentum. Put simply, the deal represents a pragmatic alignment between a market leader driving the future of computing with a legacy incumbent eager to regain relevance in the rapidly changing AI market. AI infrastructure is no longer defined by stand-alone hardware. The future of computing lies in integrated ecosystems that combine silicon, software, and systems into seamless platforms capable of delivering both scale and performance. Nvidia's deal with Intel lays the foundation for the direction of a more unified computing stack. By joining forces, the two companies are blending their respective strengths into what could evolve as a new category-defining standard for the AI era. For Nvidia, the partnership secures broader market compatibility. Meanwhile, Intel gains a tangible growth roadmap at a moment when competitive pressures are rising -- which helps Intel's efforts to restore its credibility. This collaboration is more than just a splashy headline -- it symbolizes a reshaping of the competitive landscape. At its core, Nvidia and Intel joining forces highlights a reflection that AI infrastructure will not be won as a zero-sum game, but instead, requires ongoing alignment across complementary strengths. If executed successfully, the partnership could accelerate AI adoption across both enterprise and consumer markets -- lending weight to Huang's vision that the next industrial revolution has arrived. Unsurprisingly, shares of both Intel and Nvidia rallied on news of the partnership. While I typically avoid investing in momentum stocks, this is a case where I'd consider making an exception. Intel stock has gained just 5% over the past three years and remains roughly 40% below its highs -- even after the recent double-digit bump from the Nvidia announcement. Against that backdrop, Intel looks interesting as a complementary position to existing semiconductor or AI holdings. For now, however, I would treat Intel as a smaller allocation until execution from this deal gains more visibility. As for Nvidia, this collaboration represents yet another catalyst in an already-long line of reasons to own the stock as a long-term, core holding. While the headlines sparked short-term day trading activity, I think the real value lies in the potential synergies that could play out over time. In my view, both Intel and Nvidia still have their best days ahead -- making them compelling buy-and-hold opportunities for investors with a long-term horizon.

Intel: Why the Stock Is Surging Today | Investing.com UK

Intel Corporation (NASDAQ:INTC) shares surged dramatically in premarket trading on September 18, 2025, jumping an extraordinary 28.59% to $32.02 as of pre-market hours following a groundbreaking announcement. The catalyst behind this massive surge was Nvidia's (NASDAQ:NVDA) surprise decision to invest $5 billion in the struggling chipmaker, marking one of the most significant partnerships in semiconductor industry history. This investment comes at a critical time for Intel, which has been battling declining market share and financial losses, while also following a controversial government bailout deal that gave the U.S. government a 10% stake in the company. The Nvidia partnership represents a potential lifeline for Intel's turnaround efforts and signals renewed confidence in the company's future prospects. Nvidia's $5 billion investment will make it one of Intel's largest shareholders, acquiring approximately 4% of the company at $23.28 per share - slightly below Intel's Wednesday closing price of $24.90 but above the $20.47 per share the U.S. government paid for its 10% stake last month. This strategic investment represents more than just financial backing; it establishes a comprehensive partnership that will see the two companies jointly develop PC and data center chips with enhanced AI capabilities. The collaboration is particularly significant given Nvidia's dominant position in the AI chip market and Intel's struggles to maintain relevance in the rapidly evolving semiconductor landscape. The partnership will focus on creating custom data center processors that Nvidia will package with its AI chips, utilizing proprietary Nvidia technology to enable faster communication between chips - a crucial advantage in AI applications where multiple processors must work together. For consumer markets, Nvidia will provide Intel with custom graphics chips that can be integrated with Intel's PC processors using the same high-speed connection technology. This arrangement potentially gives Intel a competitive edge against rivals like AMD while allowing Nvidia to expand its ecosystem beyond its current chip manufacturing partnerships with Taiwan's TSMC. Importantly, the deal does not involve Intel's struggling foundry business manufacturing chips for Nvidia, which many analysts believe would be necessary for Intel's long-term survival in contract manufacturing. Instead, this appears to be a strategic move by Nvidia to diversify its U.S. investments while gaining favor with the U.S. government, which has been pushing for stronger domestic semiconductor capabilities. The collaboration represents a new chapter for Intel under CEO Lip-Bu Tan, who took over in March amid significant challenges, including political pressure and financial losses. Intel's stock performance tells a story of a company in transition, with mixed results across different timeframes that reflect both recent struggles and emerging optimism. Year-to-date, Intel has actually outperformed the broader market with a 24.19% return compared to the S&P 500's 12.22% gain, and over the past year, the stock has delivered a 15.98% return, though still lagging the S&P 500's 17.14% performance. However, the longer-term picture reveals significant challenges, with Intel posting a devastating 44.87% decline over five years compared to the S&P 500's impressive 96.61% gain during the same period. These numbers underscore the company's struggle to maintain its position in an industry that has been transformed by AI and mobile computing demands. The company's financial metrics paint a concerning picture of operational challenges, with Intel reporting a staggering profit margin of -38.64% and negative earnings per share of -$4.77 for the trailing twelve months. Despite generating $53.07 billion in revenue, the company posted a net loss of $20.5 billion, resulting in negative returns on both assets (-0.85%) and equity (-18.62%). The company's market capitalization stands at $116.29 billion, supported by $21.21 billion in cash but burdened by significant debt representing 48% of equity. These financial struggles explain why the Nvidia investment and partnership announcement triggered such a dramatic positive market reaction. Intel's recent capital raising efforts have provided some breathing room, with the company securing $2 billion from Softbank and $5.7 billion from the U.S. government in addition to the new $5 billion from Nvidia. According to Chief Financial Officer David Zinsner, the company is now in a "good cash position" and won't require significant additional capital until there's substantial demand for its next-generation 14A manufacturing process. The premarket surge to $32.02 represents a critical psychological and financial milestone for Intel, suggesting that investors are beginning to see potential in the company's turnaround strategy under new leadership and with powerful new partnerships. *** Looking to start your trading day ahead of the curve?

Nvidia to invest five billion dollars in Intel as firms announce new partnership | BreakingNews

The world's leading chipmaker Nvidia has announced a new partnership with struggling semiconductor company Intel. Nvidia and Intel will team up to work on custom data centres that form the backbone of artificial intelligence (AI) infrastructure as well as personal computer products, Nvidia said in a press release. Nvidia also said it is investing five billion dollars (£3.6 billion) in the common stock of Intel, which has been struggling. The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that has propelled Nvidia into the world's most valuable company.

Chipmakers rally as Nvidia invests $5B in Intel, sector sees broad gains By Investing.com

Investing.com -- Shares of semiconductor companies gained ground in premarket trading on Thursday following news that Nvidia is investing $5 billion in Intel and that the two companies will collaborate on developing chips for PCs and data centers. Intel is leading the rally, jumping over 31% to trade above $32, a level not seen since July 2024, after Nvidia announced it would purchase Intel shares at $23.28 each. The partnership will see Intel build Nvidia-custom x86 CPUs for AI infrastructure platforms, while developing x86 system-on-chips incorporating Nvidia RTX GPU chiplets for high-performance PCs. The collaboration will connect Nvidia and Intel architectures using Nvidia NVLink technology, combining Intel's CPU expertise with Nvidia's AI and GPU capabilities. Other semiconductor stocks followed suit, reflecting optimism across the sector. US-listed shares of ASML gained 7.4%, Lam Research rose 4.6%, Applied Materials added 6%, KLA Corp climbed 4.8%, Micron Technology and Marvell Technology both increased over 2%, and Broadcom and Qualcomm advanced modestly. The VanEck Semiconductor ETF rose 3.2% in premarket trading. Not all chipmakers benefited equally. Advanced Micro Devices has declined 4.5%, Taiwan Semiconductor Manufacturing Co. has dropped 2.7%, and ARM Holdings has declined 4.5%. The Nvidia-Intel deal, which follows Intel's $8.9 billion government-backed investment in August, is seen as a major catalyst for Intel. The collaboration could accelerate AI chip development and strengthen both companies' positions in high-performance computing markets, helping lift investor sentiment across chipmakers.

Nvidia signs collaboration agreement with Intel, with $5bn investment

On Thursday, Nvidia and Intel formalized a collaboration agreement that will result in a $5bn investment by the AI chip specialist in the microprocessor manufacturer, which is currently experiencing difficulties. In a press release, the two groups said that this strategic partnership aims to jointly develop a range of "custom-built" products for data centers and personal computers, in order to accelerate applications and workloads for the hyperscale, enterprise, and consumer markets. The agreement provides for close integration of the two groups' architectures via Nvidia's NVLink technology, with the idea of combining the GPU specialist's accelerated computing and artificial intelligence (AI) power with Intel's x86 processors. In the data center space, Intel will manufacture custom x86 processors for Nvidia, which will integrate them into its AI infrastructure platforms and offer them directly to the market. In the PC segment, Intel will produce and market new x86 systems-on-chip (SoCs) integrating Nvidia RTX GPU chiplets. At current prices, Nvidia's stake -- which will be priced at $23.28, a 6.5% discount to Wednesday evening's closing price -- represents around 4.3% of Intel's capital. Following these announcements, Intel shares were expected to rise 29% on Thursday morning on the New York Stock Exchange, while Nvidia shares posted gains exceeding 3% in pre-market trading.

Nvidia and Intel forge $5 billion partnership for custom chips By Investing.com

SANTA CLARA - Nvidia (NASDAQ:NVDA) and Intel Corporation (NASDAQ:INTC) announced Thursday a strategic partnership to jointly develop custom data center and PC products, with Nvidia investing $5 billion in Intel's common stock. Intel, a prominent player in the Semiconductors industry with a market capitalization of $115.82 billion, has seen its stock surge over 24% year-to-date according to InvestingPro data. The collaboration will connect Nvidia's AI and accelerated computing technologies with Intel's CPU capabilities through Nvidia NVLink. Under the agreement, Intel will build Nvidia-custom x86 CPUs for data centers that Nvidia will integrate into its AI infrastructure platforms. For personal computing, Intel will develop x86 system-on-chips incorporating Nvidia RTX GPU chiplets, designed to power PCs requiring integrated high-performance CPUs and GPUs. Nvidia's investment in Intel will be at $23.28 per share, subject to regulatory approvals and other closing conditions. "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," said Nvidia founder and CEO Jensen Huang. Intel CEO Lip-Bu Tan stated, "Intel's leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement Nvidia's AI and accelerated computing leadership to enable new breakthroughs for the industry." The partnership aims to deliver solutions across hyperscale, enterprise and consumer markets by leveraging the strengths of both companies. The announcement was made in a press release statement from the companies. In other recent news, Intel Corporation has announced significant changes and developments. The company has amended its Direct Funding Agreement with the US Department of Commerce, resulting in a $5.7 billion disbursement. This amendment releases Intel from previous project milestone requirements and certain conditions tied to federal support under the CHIPS Act. Additionally, Intel filed a prospectus supplement to register the potential resale of shares and a warrant with the Securities and Exchange Commission. This filing involves a warrant to purchase up to 240,516,150 shares of Intel's common stock and several shares issued to the Department of Commerce. In leadership news, Intel has appointed Kevork Kechichian as executive vice president and general manager of the Data Center Group, aiming to strengthen its core business and engineering culture. Michelle Johnston Holthaus, CEO of Intel Products, has announced her decision to resign, agreeing to assist in the transition process until March 2026. Truist Securities has maintained its Hold rating on Intel stock, citing a long and uncertain recovery path despite the company's ongoing turnaround efforts. These developments highlight Intel's strategic moves to enhance its business operations and financial structure. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Nvidia boosts Intel by 30% with a $5bn investment

After the US government's $10bn investment, Nvidia has decided to inject $5bn into Intel, which is still struggling. This investment is aimed at jointly developing CPUs for gaming and artificial intelligence, as well as building new data centers. The immediate result: Intel's stock soared nearly 30% in pre-market trading on Wall Street on Thursday. However, the announcement has raised some concerns about a potential merger between Intel Foundry Services (IFS) and Nvidia. Some see it as a strategy approved by the White House to reduce dependence on TSMC in the GPU giant's supply chain. But William Beavington, semiconductor analyst at Jefferies, tempers this view: in his opinion, IFS is not mentioned in this agreement, and these fears are exaggerated for the moment. Two major questions arise from this merger. First, Nvidia currently uses Arm architecture CPUs in its rack-mountable solutions. Does this partnership with Intel spell the end of this collaboration? Second, AMD is developing new chips for AI, which have received positive initial feedback. However, Nvidia has chosen to bet on Intel, which until now has been considered the "lame duck" of the industry. The market has reacted accordingly: while semiconductors are benefiting overall from this announcement, AMD is down about 4% in pre-market trading.

Nvidia to Invest $5 Billion in Intel as Part of AI and PC Products Partnership -- Update

Nvidia will inject $5 billion into Intel as part of a collaboration between the tech giants to jointly develop custom data center and personal computing products. Nvidia will buy Intel stock at a purchase price of $23.28 a share. Shares of Intel shot up nearly 31% in premarket trading to $24.90 Thursday. Nvidia shares rose 2.7% to $174.86. Intel will build Nvidia-custom x86 CPUs that Nvidia will integrate into its AI infrastructure platforms and will also build chip systems to be used in Nvidia chiplets that power PCs. "This historic collaboration tightly couples NVIDIA's AI and accelerated computing stack with Intel's CPUs and the vast x86 ecosystem," said Nvidia Chief Executive Jensen Huang.

Nvidia bets big on Intel with $5 billion stake and chip partnership

SAN FRANCISCO (Reuters) - Nvidia on Thursday said it will invest $5 billion in Intel, throwing its heft behind the struggling U.S. chip foundry, but stopped short of giving Intel a crucial manufacturing deal. The pact, which also includes a plan for Intel and Nvidia to jointly develop PC and data center chips, represents a potential risk to Taiwan's TSMC. TSMC currently manufactures Nvidia's flagship processors, business that the world's most valuable company could one day extend to Intel. AMD, which competes with Intel for supplying chips to data centers, also stands to lose thanks to Nvidia's backing. Shares of Intel surged 12% in premarket trading, while Nvidia was up 2%. Nvidia, whose must-have chips are powering a global artificial intelligence boom, said in a statement it will pay $23.28 per share for Intel common stock, a price slightly below the $24.90 at which Intel shares closed on Wednesday. However, that is higher than the $20.47 price per share that the United States government paid for an extraordinary 10% stake it took in Intel last month. Nvidia will become one of Intel's largest shareholders, likely owning 4% or more of the company after new shares are issued to complete the deal. Nvidia's support represents a new opening for Intel after years of turnaround efforts at the famed U.S. manufacturer failed to pay off. The company - once the chip industry's flagbearer that claimed to put the "silicon" in Silicon Valley - appointed a new CEO, Lip-Bu Tan, in March. Tan has vowed to make Intel's operation lean and build factory capacity only when there's demand to match it. Crucially, the deal will not involve Intel's contract manufacturing business, known as a "foundry" in the chip industry, making chips for Nvidia. Most analysts believe that for Intel's foundry to survive, it would need to eventually win a large customer such as Nvidia, Apple, Qualcomm or Broadcom. But the deal adds to a growing reserve of capital that Intel has accumulated weeks after it announced a $2 billion investment from Softbank and received $5.7 billion from the U.S. government. David Zinsner, Intel's chief financial officer, told investors at a Deutsche Bank conference last month that the company was in a "good cash position" and would not require much more capital until it saw significant demand for 14A, a next-generation manufacturing process that it expects to invest heavily in building. SPEEDY LINKS Under the deal announced Thursday, Intel is planning to design custom data center central processors that Nvidia will package with its AI chips, known as GPUs. A proprietary Nvidia technology will let the Intel and Nvidia chips communicate at higher speeds than before. Those speedy links are a key differentiator in the AI market because many chips must be strung togetherto act as one to chew through massive amounts of data. At present, Nvidia's best-selling AI servers with those speedy links are only available using Nvidia's own chips, but the deal would now put Intel on equal footing, giving it a chance to make money off each Nvidia server. The combined Nvidia-Intel chips could provide a major competitive challenge to AMD, which is developing its own AI servers, and Broadcom, which also has chip-to-chip connection technology and helps companies such as Google develop AI chips. For consumer markets, Nvidia will provide Intel with a custom graphics chip that Intel can package with its PC central processors with the same speedy links, potentially giving it an edge against rivals such as AMD. While Intel's x86 computing architecture has lost ground in both data centers and PCs to chips with technology from Arm Ltd, it still has majority market share. "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 a press release. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." The two companies did not disclose financial terms of their technical collaboration but said they would make "multiple generations" of future products. Nvidia and Intel officials described the collaboration as a commercial arrangement under which they will provide chips to one another to create products and said there was no licensing component to the deal. The companies declined to give a date for when the first joint products will come to market but said that their product plans prior to the joint deal have not changed. Nvidia in recent years has entered both the PC central processor market and the data center central processor market. Intel meanwhile has tried to sell several AI chips that compete with Nvidia and has said it plans to develop an AI data center server that would compete with Nvidia. (Reporting by Stephen Nellis, Jeffery Dastin and Max Cherney in San Francisco; Editing by Sam Holmes)

Nvidia-Intel partnership explained: USD 5 billion investment, custom x86 with NVLink, and a shared roadmap

Executives framed the move as a multi-generation roadmap with large addressable markets in data centres and notebooks. Nvidia and Intel have announced a collaboration that, on paper, reorders parts of the semiconductor landscape. The companies will co-develop multiple generations of custom products for both data centres and personal computers, with a technical focus on tightly coupling Intel's x86 CPUs to Nvidia's accelerated computing stack via NVLink. Nvidia will also invest 5 billion dollars in Intel at a stated purchase price of 23.28 dollars per share, subject to customary approvals. If that sounds like an historic about-face, the language from both chief executives matches the scale of the move. Jensen Huang called it a fusion of two world-class platforms that lays the foundation for the next era of computing, while Intel's Lip-Bu Tan highlighted x86's foundational role and Intel's packaging and manufacturing strengths as complements to Nvidia's AI leadership. Two product tracks define the deal. First, Intel will build Nvidia-custom x86 server CPUs that Nvidia will integrate into its own AI infrastructure platforms. The intent is to place these CPUs directly on Nvidia's NVLink fabric, creating rack-scale AI systems that behave more like single, enormous accelerators than traditional clusters. Second, on the client side, Intel will produce x86 system-on-chips that integrate Nvidia RTX GPU chiplets, connected over NVLink to present, in effect, a virtual giant SoC inside thin-and-light form factors. This targets the large swathe of laptops where integrated graphics has dominated for reasons of size, cost, and battery life, a segment that Nvidia's discrete GPUs have not fully addressed. Obviously, everyone wants to know how big is the prize? Nvidia and Intel pointed to two very large fronts. On servers, Nvidia talked about bringing x86 into its NVLink 72 rack-scale architecture, historically tied to ARM-based CPUs in its own platforms. On PCs, the companies see an addressable market of roughly 150 million notebooks per year, with a new class of integrated RTX laptops that sits between today's integrated graphics and high-end dGPU designs. As for the economics of the two new products lines being architected, Nvidia described a two-sided flow. In data centres, Nvidia becomes a major purchaser of Intel server CPUs, which it will fuse into NVLink superchips and resell as part of its rack-scale nodes. In PCs, Nvidia supplies GPU chiplets that are packaged with Intel CPUs inside x86 SoCs. In both cases, the collaboration opens new revenue for Intel and expands Nvidia's reach into segments it did not previously serve. Which brings up the question of who's making the new products. The executives kept the manufacturing discussion focused on product goals rather than immediate process nodes. They reiterated respect for TSMC and said Intel will continue to qualify its own advanced nodes, while emphasising that Intel's multi-technology packaging capabilities, cited on the call as Fevros and EMIB, are enabling because they allow mixing an Nvidia GPU chiplet fabricated at one foundry with an Intel CPU from another. So when will the products ship? While no launch dates were given, the executives said architecture teams have already been working together for about a year across server and PC product lines. That implies substantive design maturity, though the companies framed detailed process and schedule disclosures as coming closer to product readiness. NVIDIA has been using ARM designs for a while now and this announcement does raise a few questions about the future of those product lines. This alliance will not be replacing NVIDIA's current ARM plans. Nvidia reiterated continued commitment to its ARM roadmap, including next-generation Grace, robotics platforms, and control processors for AI systems. The point, according to Nvidia, is to accelerate any CPU platform with meaningful market reach, not to privilege one instruction set over another. The linchpin is NVLink as the computing fabric. In Nvidia's view, the NVLink 72 rack-scale design turns an entire rack into one logical GPU, provided the host CPU is designed to participate in that topology. Until now, this has been available on its Vera ARM CPUs, not on the broader x86 ecosystem that is usually limited to PCIe. By collaborating with Intel on custom x86, Nvidia aims to remove that ceiling for scale-up systems. On the PC side, NVLink becomes the interconnect that unifies an Intel CPU and an RTX GPU chiplet into a single, tightly coupled system. The appeal here is performance per watt and form factor: an SoC that behaves more like a co-designed CPU-GPU than a bolted-on discrete part. Nvidia and Intel explicitly positioned this for the integrated graphics tier, which has been underserved by high-end GPUs. One practical reason this alliance is feasible is the maturity of heterogeneous packaging. The call highlighted Intel's ability to mix and match dies from different processes and even different foundries, letting an Nvidia GPU chiplet sit alongside an Intel CPU inside the same package. That reduces latency, increases bandwidth, and gives both firms freedom to choose the best process for each die. Intel's EMIB and its named multi-technology packaging flow were presented as central to rapid iteration. Strip away the slogans and the strategy reads cleanly. In data centres, Nvidia gains a way to scale its NVLink supercomputer architecture into the x86 world where enterprises have entrenched investment, while Intel's CPUs ride on top of Nvidia's AI platform momentum. In client computing, Intel expands the value of x86 SoCs with RTX-class graphics, and Nvidia gets to participate in a vast integrated graphics segment it previously could not reach. The 5 billion dollar equity ticket aligns incentives and signals confidence that the combined roadmap can move revenue for both companies. For hyperscalers and large enterprises, the promise is a rack that behaves like one giant accelerator, with x86 control planes that fit existing software and procurement habits. If the execution matches the pitch, this should reduce integration friction for customers that prefer x86 for orchestration but want the throughput and memory semantics of NVLink-attached GPUs. For PC makers, the new x86 RTX SoCs could enable thin-and-light designs that deliver AI workflows, creative workloads, and gaming at levels previously reserved for machines with discrete GPUs. That does not displace premium dGPU notebooks, it fills the space below them with more capable integrated platforms. This move puts pressure on several fronts. AMD has been pushing its own accelerated platforms for years, spanning EPYC in data centres and Ryzen APUs on the client side. An Intel-Nvidia pairing that makes x86 a first-class citizen on NVLink would challenge AMD not just on GPU capability, which is Nvidia's home turf, but on the CPU attach rate inside AI racks that speak Nvidia's native fabric. On the PC side, an Intel SoC with RTX chiplets places a new ceiling on integrated graphics performance, and invites a response from both AMD's APU roadmap and any ARM-based entrants at the high end. At the same time, the companies were careful to avoid overcommitting on foundry. TSMC remains central to Nvidia's GPU production, while Intel is progressing its own nodes. The thread that ties this together is packaging: a way to bridge foundry choices without forcing either party's hand. There are several, the first is sheer execution complexity. Multi-die, multi-foundry packages are powerful, although they require meticulous co-design of power, thermals, coherency, and software stacks. The second is market timing. The firms indicated that architecture work has been under way for roughly a year, however, detailed product schedules will only emerge as designs near readiness. The third is that Nvidia is not abandoning ARM. That multiplies, rather than simplifies, its CPU strategy, which could be a strength if managed well and a distraction if not. Regulatory approval is also a factor. The equity investment will pass through standard processes, and the companies signposted forward-looking risks at the top of the call. None of this is unusual, but it is worth noting given the geopolitical sensitivities around advanced computing supply chains. There appear to be a couple of key milestones that we need to be watching for. First, a technical briefing that details how Intel's custom x86 CPU for NVLink differs from conventional PCIe-attached server CPUs, especially with regard to memory semantics, coherency domains, and NVLink switch disaggregation. Second, a client platform reveal that shows performance-per-watt and battery life for the first x86 RTX SoC laptops compared with today's integrated graphics tier. Third, packaging demos that quantify latency and bandwidth gains from the mixed-foundry chiplet approach, and the range of thermals OEMs can realistically support in thin chassis. Each of these will determine whether the collaboration's promise translates into product-market pull. This is a multi-generation product plan tied to a sizeable equity stake, with a clear division of labour: Intel contributes x86 CPUs, process and packaging, and Nvidia brings NVLink, RTX chiplets, and the software stack that currently defines accelerated computing. If the companies hit their engineering marks, the result could be data centre systems that scale more cleanly and client platforms that make integrated AI performance feel far less compromised. The two firms have spent a year laying the architectural groundwork. Now the market waits for silicon.