In this articleINTCNVDA your favorite stocksCREATE FREE ACCOUNTwatch now4:1204:12Nvidia to invest $5 billion in IntelSquawk BoxNvidia said it will invest $5 billion in Intel as part of a deal to co-develop data center and PC chips with the troubled chipmaker, which took on the U.S.
government as an investor last month.Nvidia is its stake at a price of $23.28 a , a release from the company said.
Intel s jumped 25% to around $31 a ing news of the deal."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," said Nvidia CEO Jensen Huang in a release.Nvidia now joins Softbank and the U.S.
government in supporting Intel's turnaround.Intel s, which hit their lowest in more than a decade earlier this year, rebounded after finding renewed support from the Trump administration, striking a deal for the U.S.
government to invest 10% in the chipmaker in August.White House Deputy Press Secretary Kush Desai said in a statement Thursday that the partnership was a "major milestone for American high- manufacturing."Read more CNBC newsNvidia CEO says he's 'disappointed' after report China has banned its AI chipsAmazon CEO Jassy says company is reducing bureaucracy, which is 'anathema' to innovationOracle and Silver Lake part of TikTok investor group as Trump extends deal deadlineMeta Connect 2025: AI-powered smart glasses take center stageSoftbank also made a $2 billion investment with Intel in August.The government put $8.9 billion into the chipmaker for 433.3 million s.
That stake is now worth $13.4 billion with s at $31."What's un is whether this represents token cooperation int for political purposes, or if it's the start of a wider collaboration that would more significantly benefit INTC," wrote Wolfe Re's Chris Caso in a note Thursday ing the announcement.Caso said the biggest question is if Nvidia will manufacture at Intel's fabs.The investment, which is subject to regulatory apvals, does not appear to include the manufacturing of Nvidia chips with Intel's foundry.
Huang and Intel CEO Lip-Bu Tan will hold a press conference on the deal at 1 p.m. ET.Intel will build x86 central cessing units for Nvidia's AI infrastructure platforms, according to the release.
On the PC front, Intel will build x86 system-on-chips using Nvidia's RTX graphics cessing units that will power computers.s of Nvidia, which is in the middle of U.S.
and China trade negotiations to get apval to sell less-advanced chips in China, were up 3% in premarket trading.Intel s were pacing for their best day since October 1987, when it gained 26.4%.Stock Chart IconStock chart iconIntel, YTD