Nvidia’s $5B Intel Investment Finalizes, NVDA Shares Dip Slightly
Nvidia's shares slid nearly 2% on Monday as the chipmaker completed its $5 billion investment in Intel, acquiring 214.7 million shares through a private placement. The September announcement had initially buoyed both stocks, but the transaction's execution brought near-term pressure to NVDA while lifting INTC.
The strategic partnership aims to bridge NVIDIA's AI and accelerated computing with Intel's CPU technologies via NVLink integration. Nvidia's stake represents approximately 4% of Intel, complementing recent investments totaling $16 billion—including a $10 billion US government injection to bolster domestic chipmaking against China.
Wall Street remains bullish on Nvidia's long-term prospects despite the dip. "AI is powering a new industrial revolution," the company noted, signaling transformative potential across computing architectures.
