Nvidia takes $5 billion stake in Intel, offers chip tech in new lifeline to struggling chipmaker

Core Insights - Nvidia announced a $5 billion investment in Intel, marking a significant support for the struggling chipmaker [1][2] - This investment resulted in a 23% increase in Intel's stock price, making Nvidia one of its largest shareholders with approximately 4% ownership after new shares are issued [2] - The partnership will focus on jointly developing PC and data center chips, while Intel's foundry will supply central processors and advanced packaging for these products [5] Company Developments - Intel appointed a new CEO, Lip-Bu Tan, in March, who faced criticism from President Trump regarding his connections with China, leading to a unique arrangement for the U.S. government to acquire a 10% stake in Intel [3] - Nvidia's CEO, Jensen Huang, clarified that the Trump administration was not directly involved in the partnership but would have supported it [4] Market Implications - Analysts suggest that for Intel's foundry business to thrive, it needs to secure large customers like Nvidia, Apple, Qualcomm, or Broadcom [6] - Nvidia's investment price of $23.28 per share is slightly below Intel's recent closing price of $24.90 but higher than the $20.47 price paid by the U.S. government [7]