SANTA CLARA, Calif., Sept. 18, 2025 — In a landmark move that reshapes the global semiconductor landscape, Nvidia Corporation has announced a $5 billion investment in its longtime rival Intel Corporation. The deal, which grants Nvidia a roughly 4% stake in Intel, is aimed at jointly developing next-generation chips for data centers and personal computing platforms.
The investment comes at a critical juncture for Intel, which has faced mounting financial and technological challenges in recent years. Once the dominant force in chipmaking, Intel posted a $19 billion loss in 2024 and an additional $3.7 billion loss in the first half of 2025. The company is also preparing to cut nearly 25% of its workforce by year-end.
Nvidia’s stake acquisition, priced at $23.28 per share, triggered a surge in Intel’s stock, which rose by over 30% in premarket trading to approximately $33. Nvidia shares also climbed 3% following the announcement, while rival AMD saw a 5% decline amid investor recalibration.
Under the terms of the partnership, Intel will design and manufacture custom x86 CPUs for Nvidia’s AI infrastructure platforms. Additionally, Intel will produce x86 system-on-chips (SOCs) integrating Nvidia RTX GPU chiplets for high-performance PCs. The collaboration will leverage Nvidia’s NVLink technology to connect both companies’ architectures, combining Nvidia’s AI and accelerated computing stack with Intel’s CPU and x86 ecosystem.
“This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem,” said Nvidia CEO Jensen Huang. “Together, we will expand our ecosystems and lay the foundation for the next era of computing”.
Intel CEO Lip-Bu Tan echoed the sentiment, stating, “Intel’s leading data center and client computing platforms, combined with our process technology and advanced packaging capabilities, will complement NVIDIA’s AI leadership to enable new breakthroughs for the industry”.
Notably, the deal does not include Intel’s foundry services manufacturing chips for Nvidia. Analysts suggest that for Intel’s foundry business to survive, it will need to secure major clients such as Apple or Qualcomm.
The announcement follows the U.S. government’s recent decision to acquire a 10% stake in Intel, signaling strategic support for the legacy chipmaker amid geopolitical and market pressures.
A joint press conference featuring both CEOs is scheduled for later today to outline the roadmap for this unprecedented alliance. Industry observers view the partnership as a pivotal moment in the evolution of computing, with AI-driven innovation at its core.
