Intel and Nvidia Partnership Fuels Stock Surge Amid Chipmaking Ambitions
Intel (INTC) shares surged 9% while Nvidia (NVDA) gained 2% on Wednesday as details emerged about their strategic partnership finalized in December. The collaboration, which includes Nvidia's $5 billion stake purchase in Intel, aims to integrate NVIDIA NVLink technology with Intel's CPU architectures, creating synergies between AI acceleration and x86 ecosystems.
The deal positions Intel to reclaim its all-time high stock levels by 2026, with combined investments reaching $26 billion when including recent US government funding. This capital injection strengthens Intel's position in the global semiconductor race against Chinese competitors.
Separately, Intel's CES unveiling of its Panther Lake processor line—promising 60% performance gains over previous models—and Wall Street's bullish outlook contributed to the rally. The company has already begun shipping products using its advanced 18A manufacturing process.
