Is Intel Stock a Buy Now That It's Backed by Nvidia?

Core Viewpoint - Nvidia announced a $5 billion investment in Intel to co-develop custom products for data centers and PCs, leading to a significant increase in Intel's stock price by over 20% [1][5]. Group 1: Partnership Details - Nvidia will invest $5 billion in Intel common stock at $23.28 per share, pending regulatory approvals [4]. - The collaboration includes Intel designing Nvidia-custom x86 CPUs for AI infrastructure and building x86 system-on-chips for PCs that integrate Nvidia RTX GPU chiplets [4][5]. - This partnership is seen as a vote of confidence in Intel's roadmap and manufacturing capabilities, potentially leading to new breakthroughs in the industry [5]. Group 2: Intel's Current Business Situation - Intel has faced challenges such as product delays, shrinking margins, and significant losses in its foundry segment [2]. - Recent financial results showed second-quarter revenue at $12.9 billion, flat year-over-year, with a GAAP gross margin decline to 27.5% and a GAAP loss per share of $0.67 due to $1.9 billion in restructuring charges [6]. - The company is undergoing a turnaround, focusing on cost-cutting and capital spending adjustments, while cautious guidance continues [7].