Benzinga·2025-09-18 16:06Core Insights - Intel's stock surged after announcing a partnership with Nvidia to co-develop custom chips and next-generation systems, positioning Intel in the AI boom and the global computing race [1][2] - The collaboration is seen as a transformative moment for Intel, enhancing its role in the AI sector and addressing past investor frustrations [2][4] Company Developments - Intel will manufacture Nvidia-custom CPUs for data centers, which will be integrated into Nvidia's AI infrastructure platforms [3] - The partnership includes Intel designing a system-on-chip (SoC) that incorporates Nvidia's RTX GPU chiplets, combining high-performance CPUs and GPUs for PCs [3] Industry Implications - The alliance strengthens U.S. leadership in the AI arms race against China, transforming Intel from a laggard into a catalyst in the industry [4] - AI infrastructure spending is projected to reach $3–4 trillion by 2030, with Nvidia maintaining dominance in the chip market while competitors struggle to keep pace [5] Market Reaction - Following the announcement, Intel shares increased by 29.36% to $32.21, while Nvidia shares rose by 3.47% [6]