Nvidia Invests In Intel As Two Collaborate On Chip Development

Core Viewpoint - Nvidia is investing $5 billion in Intel to develop custom data center and PC products, marking a significant collaboration between the two companies [1][3]. Group 1: Collaboration Details - The partnership will leverage Nvidia's NVLink technology to connect Nvidia and Intel architectures, combining Nvidia's AI and accelerated computing strengths with Intel's x86 ecosystem and CPUs [2]. - Intel will create custom x86 CPUs for data centers that integrate with Nvidia's AI infrastructure platforms [2]. - For personal computers, Intel will develop x86 system-on-chips that incorporate Nvidia RTX GPU chiplets, enhancing the integration of CPUs and GPUs [3]. Group 2: Financial Impact - Nvidia's investment in Intel is priced at $23.28 per share, subject to regulatory approvals [3]. - Following the announcement, Intel's stock surged approximately 30% to $32.42 in premarket trading, breaking out of a 30-week consolidation pattern [4]. - Nvidia's stock also saw an increase of nearly 3%, reaching $175.04 in early trades [4]. Group 3: Industry Reactions - Nvidia's CEO emphasized that the collaboration represents a fusion of two leading platforms, setting the stage for a new era in computing [5]. - In contrast, other chipmakers like AMD and Taiwan Semiconductor Manufacturing experienced declines in their stock prices, with AMD dropping over 4% and Taiwan Semiconductor falling nearly 3% [6].