NVIDIA shares rise 3.4% in premarket after Intel stake announcement

NVIDIA shares rise 3.4% in premarket after Intel stake announcement

NVIDIA Corporation (NVDA) has seen its shares rise by 3.4% in premarket trading following the announcement of a significant investment in Intel Corporation (INTC). The tech giant has committed $5 billion to acquire a stake in Intel, with shares trading at $23.28 each, slightly below the Wednesday closing price of $24.90 .

The investment, which will make NVIDIA one of Intel's largest shareholders, comes as part of a strategic partnership aimed at co-developing data center and PC products. This collaboration will integrate NVIDIA's expertise in AI and accelerated computing with Intel's established CPU architecture and the expansive x86 software ecosystem .

The deal, which excludes joint chip manufacturing, is designed to streamline hybrid computing environments for enterprises worldwide. It reflects the growing demand for AI-driven infrastructure and the need for seamless interoperability between GPU and CPU resources. Intel, which has faced manufacturing delays and competitive pressures, stands to benefit from NVIDIA's capital infusion and technological synergies .

The market reacted positively to the news, with Intel shares surging 33% to approximately $33 in premarket trading. NVIDIA shares climbed 3% in the same session, reflecting investor optimism about the partnership's potential to stabilize and propel Intel's recovery. The agreement remains contingent on regulatory clearances, and further details are expected during a joint press conference scheduled for 1 p.m. ET .

This strategic partnership not only positions NVIDIA for deeper penetration into x86-dominant markets but also sets a precedent for cross-licensing and joint ventures that could mitigate the fragmentation risks posed by geopolitical tensions and supply chain vulnerabilities .