Nvidia has announced a $5 billion investment in U.S. chipmaker Intel, making it one of Intel’s largest shareholders. Following the news, Intel’s stock surged by 30% in the market, marking a significant jump.
As part of this partnership, the two companies will jointly develop PC and data center chips. The collaboration will be based on a specialized Nvidia technology designed to enable faster chip-to-chip communication.
Nvidia’s move aims to diversify its investment portfolio and strengthen its ties with the U.S. government. At the same time, the partnership poses potential risks for rivals such as Taiwan’s TSMC and U.S.-based AMD, which currently supply chips to Nvidia.
The deal follows Intel’s major financial backing from SoftBank and the U.S. government, further expanding the company’s investment opportunities and reinforcing its future strategy. With this collaboration, Intel seeks to maintain its position in the x86 architecture while boosting its competitiveness in the AI market.
