Nvidia’s $5B Intel Bet: Tech Titans Collide in Historic Semiconductor Power Move

Nvidia just placed its biggest chip yet—a $5 billion wager on Intel's comeback story.

The GPU giant's massive investment signals seismic shifts in semiconductor alliances. Traditional industry lines blur as AI hardware demands rewrite partnership playbooks.

Why Intel? Why now? Nvidia's playing multidimensional chess while competitors scramble. This isn't just about fab capacity—it's about controlling the entire compute stack from silicon to software.

Wall Street analysts initially scratched heads—until they remembered Nvidia's track record of seeing around corners. The move pressures AMD, TSMC, and every chip player not named Jensen Huang.

Semiconductor cold wars just got hotter. Nvidia's checkbook remains open—and the industry holds its breath for the next power move. Because in tech, today's $5B bet is tomorrow's table stakes.

KEY TAKEAWAYS

• Nvidia is investing $5 billion in Intel and will co-develop chips for PCs and data centers, the companies announced Thursday.
• Nvidia said it will buy Intel common stock at $23.28 a share, around 7% below where they closed yesterday.
• Intel shares soared in premarket trading Thursday following the news. Nvidia shares also climbed.

Nvidia (NVDA) is investing $5 billion in Intel and will jointly develop chips and data centers, the companies announced Thursday.

Nvidia, the chip designer at the heart of the AI boom, said it will buy Intel common stock at $23.28 a share—around 7% below where they closed yesterday. The news of the tie-up between the two American chipmakers sent shares of government-backed Intel soaring 28% in premarket trading, while Nvidia shares climbed 3%.

Intel will build data centers that Nvidia will " integrate into its AI infrastructure platforms and offer to the market," and also make chips that will integrate "Nvidia RTX GPU chiplets," the companies said.

Nvidia CEO Jensen Huang called it a "historic collaboration" that fuses two "world-class platforms," adding "together, we will expand our ecosystems and lay the foundation for the next era of computing."

Intel CEO Lip-Bu Tan, meanwhile, said the company’s “leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA’s AI and accelerated computing leadership.”

Once a leading chipmaker, Intel has fallen behind rivals like chip manufacturer TSMC (TSM) and struggled to keep up with technological advancements in the space. The TRUMP administration is pushing to make the company a national champion in the production of AI chips, however, and last month said it would take a 10% stake in the company.