Nvidia to invest $5bn in Intel after Trump administration’s 10% stake

Core Insights - Nvidia plans to invest $5 billion in Intel and collaborate on products, particularly in AI infrastructure and personal computing [1][2][4] - Intel's shares surged nearly 23% following the announcement, marking its largest one-day percentage gain since 1987, while Nvidia's market value rose to $4 trillion [3] - The collaboration aims to integrate Nvidia's AI technology with Intel's CPUs, enhancing both companies' ecosystems for future computing [4][5] Investment Details - Nvidia will purchase Intel common stock at $23.28 per share, pending regulatory approvals [4] - This investment follows a recent 10% stake acquisition in Intel by the Trump administration, indicating significant governmental interest in the semiconductor sector [2] Strategic Collaboration - Intel will develop custom chips for Nvidia's AI infrastructure, while Nvidia will integrate its technology into Intel's PC products [5] - The partnership is seen as a critical move for Intel, which has struggled in recent years, losing nearly $19 billion last year and an additional $3.7 billion in the first half of this year [6] Market Context - Nvidia has experienced substantial growth due to its GPUs, which are essential for AI development, contrasting with Intel's decline in the mobile computing and AI markets [7] - Softbank also invested $2 billion in Intel, highlighting a trend of significant investments in the company amid its struggles [8]