Nvidia Invests $5 Billion in Intel, Stocks Surge 30%

On September 18, Nvidia announced that it would invest 5 billion dollars in Intel and that the two companies had reached a cooperation agreement. The agreement aims to jointly develop artificial intelligence infrastructure and personal computing products.

Following the announcement, Intel's stock price surged before the market opened, rising more than 30% at one point. Nvidia's stock price also rose more than 3% before the market opened.

Nvidia will invest 5 billion dollars in Intel, purchasing Intel shares at 23.28 dollars per share. This price is approximately 6.5% lower than Intel's closing price of 24.90 dollars on September 17. Notably, based on Intel's latest market capitalization, upon completion of the transaction, Nvidia is expected to hold more than 4% of Intel's shares, becoming one of Intel's major shareholders.

According to the cooperation agreement, in the data center sector, Intel will customize x86 CPUs for Nvidia, which will integrate them into its AI infrastructure platform. In the consumer market, Intel will manufacture x86 system-level chips integrated with Nvidia's RTX graphics cards to power high-performance PCs.

This collaboration marks a historic partnership between two major computing platforms. The CEO of Nvidia stated that this agreement represents a "historic cooperation" between the two computing platforms. The CEO of Intel also expressed that this collaboration will "complement Nvidia's leadership in AI and accelerated computing."

Historically, Nvidia and Intel have had a long-standing relationship. The two companies previously collaborated on integrated graphics solutions. However, with the rise of AI, competition between them has intensified. Nvidia has dominated the market for GPUs used in large model training. In 2023, the then-CEO of Intel mentioned that there is an industry drive to challenge Nvidia's position. Nvidia, on the other hand, has gradually entered the CPU market since 2020, directly competing with Intel.