Stocks Open Mixed as Nvidia-Intel Pact Sends Shockwaves Through Chip Sector

U.S. stocks opened mixed Thursday as a surprise tie-up between

At the opening bell, the Dow Jones Industrial Average slipped 3.55 points, or 0.01%, to 46,014.8. The Nasdaq Composite surged 172.20 points, or 0.77%, to 22,433.5, while the S&P 500 rose 25.88 points, or 0.39%, to 6,626.23. The Russell 2000 added 1.88 points, or 0.79%, to 240.77.

The day’s defining catalyst was news that Nvidia had taken a $5 billion

Shares of Intel surged more than 30% to above $32, their best levels in more than a year, after breaking through the key $25 resistance zone. Nvidia, meanwhile, climbed around 3% despite ongoing concerns over U.S. restrictions on AI chip exports to China. In contrast, Advanced Micro Devices fell more than 5%, as investors reassessed its competitive footing against a newly aligned Nvidia-Intel axis.

For Intel, the deal offers badly needed momentum after years of losing ground in both process technology and profitability. The company had recently secured an $8.9 billion U.S. government infusion through the CHIPS Act, alongside the sale of its Altera programmable unit to Silver Lake. Nvidia’s investment now provides both capital and credibility. “This collaboration is validation that Intel’s x86 architecture and advanced packaging technologies remain critical to the industry,” Intel CEO Lip-Bu Tan said.

For Nvidia, the move is as much strategic as financial. The company remains the undisputed leader in AI hardware, but faces mounting geopolitical risks. Partnering with Intel secures a U.S.-based

Wall Street will be watching closely when the two companies hold a joint conference call at 1 p.m. ET, expected to outline roadmaps, address regulatory questions, and detail how quickly custom products could reach the market. Analysts caution that execution will be critical, particularly as investors weigh whether Intel’s foundry capabilities might eventually expand to Nvidia production.

The ripple effects were immediate. Reuters noted the pact could pressure Taiwan Semiconductor, while AMD’s double exposure in both CPUs and GPUs makes it the clear loser in the new alignment. For now, however, the market reaction underscores a dramatic shift: Intel, long seen as an underdog, may have found a powerful lifeline in Nvidia.