New York Postยท2025-09-18 15:28Core Viewpoint - Nvidia is investing $5 billion in Intel, becoming one of its largest shareholders with approximately 4% ownership, which marks a significant support for Intel amid its ongoing turnaround efforts [1][2][5]. Investment Details - Nvidia will pay $23.28 per share for Intel common stock, which is slightly below Intel's recent closing price of $24.90 but higher than the $20.47 price paid by the US government [6]. - The investment follows a $2 billion investment from Softbank and a $5.7 billion investment from the US government, contributing to Intel's growing capital reserves [10]. Strategic Collaboration - The agreement includes plans for Nvidia and Intel to jointly develop PC and data center chips, although it will not involve Intel's foundry business [5]. - Intel will design custom data center central processors that Nvidia plans to package with its AI chips, enhancing communication speeds between the two companies' chips [17]. - The collaboration aims to produce multiple generations of future products without a licensing component [7]. Market Impact - Following the announcement, Intel's shares rose approximately 26%, while AMD shares fell by 4.6%, indicating a potential competitive challenge for AMD and Broadcom [13][20]. - The partnership could provide Intel with a competitive edge in the consumer market by allowing it to package custom graphics chips with its PC central processors [21]. Political Context - Nvidia's investment aligns with US policy and may help ease restrictions on selling advanced chips to China, despite not directly addressing Nvidia's challenges in that market [9][15].