Nvidia announced a $5 billion purchase of Intel common stock at a price of $23.28 per share. The deal is still subject to regulatory approval, but financial markets reacted immediately: Intel’s shares surged by almost 23%, while Nvidia’s own stock climbed by more than 3%. This reflects investor confidence in the strengthened strategic cooperation between the two companies.
The timing of the announcement is notable. Just one month earlier, the Trump administration acquired a 10% stake in Intel, and in August 2025 SoftBank purchased a further 2% stake for $2 billion. The Nvidia–Intel partnership is centred on the AI data centre and PC markets: Intel has committed to producing customised CPUs for Nvidia’s AI platforms, while Nvidia’s technology will be integrated into Intel’s PC products. The companies estimate the addressable market at $50 billion, underlining the scale of the opportunity. Analysts argue that the agreement provides Intel with a strategic lifeline, after years of declining market share and financial pressure.
In sum, the transaction not only stabilises Intel’s financial position but also signals Nvidia’s long-term interest in CPU–GPU integration. The September 2025 announcement therefore carries significance beyond capital markets, aligning with the United States’ semiconductor strategy that aims to strengthen domestic manufacturers in the global AI race.
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Johana Bhuiyan
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