CNBC·2025-09-18 18:37Core Insights - Nvidia has announced a $5 billion investment and technology collaboration with Intel, following nearly a year of discussions between the two companies [1][2] - The partnership aims to co-develop data center and PC chips, integrating Intel's x86-based CPUs with Nvidia's GPUs and networking technology [3] Company Performance - The collaboration reflects a significant shift in the market dynamics of Silicon Valley, with Nvidia's stock rising 1,348% over the past five years, while Intel's shares have decreased by 31.78% [4] - Nvidia's market capitalization exceeds $4.25 trillion, contrasting sharply with Intel's $143 billion valuation [4] Market Opportunities - The partnership will target a combined addressable market worth $50 billion, focusing on AI systems for data centers and integrating Nvidia's GPU technology into Intel's CPUs for laptops and PCs [6] - Nvidia plans to become a major customer of Intel's CPUs while supplying GPU chiplets for Intel's products, indicating a strong collaborative relationship [7] Technical Collaboration - Nvidia will utilize Intel's packaging technology, which is crucial for integrating multiple chip components into a single unit for machines [8] - The collaboration will not affect Nvidia's existing relationship with Arm, as the focus remains on custom CPUs rather than foundry partnerships [7][8]