Nvidia Bets Big on Intel: $5B Stake, Chip Partnership Lift Intel Pre-market 30%

NVIDIA (NASDAQ: NVDA) and Intel Corporation (NASDAQ: INTC) today announced a collaboration to jointly develop multiple generations of custom data center and PC products that accelerate applications and workloads across hyperscale, enterprise and consumer markets.

Shares of Intel surged more than 30% in premarket trading, while Nvidia was up more than 3%. AMD slipped nearly 4%, while U.S.-listed shares of TSMC slid 2%.

The 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. These new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs.

NVIDIA will invest $5 billion in Intel’s common stock at a purchase price of $23.28 per share. 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. The investment is subject to customary closing conditions, including required regulatory approvals.

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.

“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. “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.”

What's the impact from the deal to the industry?

The $5 billion investment and chip partnership between NVIDIA and Intel is set to reshape key segments of the tech industry, with far-reaching ripple effects across manufacturing, data centers, and personal computing.

Semiconductor Manufacturing:

TSMC, currently the producer of NVIDIA’s flagship GPUs, faces risks of losing high-end chip orders to Intel—if Intel advances its process yields, NVIDIA may shift part of its production, disrupting the existing supply chain balance.

Data Center CPU Market:

Competition heats up. Intel will develop custom x86 CPUs for NVIDIA’s AI infrastructure, directly challenging AMD (Intel’s main rival in this space) and pushing AMD to speed up R&D to retain market share.

PC Market:

Product performance is poised to improve. The collaboration may spawn integrated chips that merge NVIDIA’s graphics capabilities with Intel’s CPU power, delivering higher-performance, more energy-efficient PCs. AMD, a top competitor in the PC chip segment, will face heightened pressure.

Conclusion

NVIDIA and Intel’s $5 billion investment and chip collaboration represents a transformative industry shift, merging NVIDIA’s AI/accelerated computing strengths with Intel’s x86 ecosystem to reshape data center, PC, and semiconductor landscapes. Beyond immediate market reactions—Intel’s 30% premarket surge, AMD’s decline, and TSMC facing production competition—the deal creates a new competitive force: it promises higher-performance, energy-efficient computing for customers while pressuring rivals like AMD to accelerate R&D and TSMC to defend its manufacturing dominance. More broadly, the alliance underscores that in AI-driven computing, complementary partnerships are key to defining the next era of tech—with its long-term impact hinging on execution, but its role in shifting industry power dynamics already clear.