Sou Hu Cai Jing·2025-09-23 06:25Core Viewpoint - Nvidia (NVDA) has announced a $5 billion investment in Intel (INTC), making it one of Intel's largest shareholders with approximately 4% ownership, which enhances Intel's capital reserves amid previous investments from SoftBank and the U.S. government [1][5]. Group 1: Investment Details - Nvidia will invest in Intel's common stock at a price of $23.28 per share, contributing to Intel's growing capital reserves [1]. - This investment follows a $2 billion investment from SoftBank and a $5.7 billion investment from the U.S. government [1]. Group 2: Strategic Collaboration - Both companies have agreed to provide chips to create "multi-generational" joint products, connecting Intel's CPUs with Nvidia's AI and graphics chips using Nvidia's proprietary NVLink technology [3]. - The collaboration includes plans to jointly develop PC and data center chips, but does not involve Intel manufacturing chips for Nvidia [3]. Group 3: Market Implications - Nvidia's investment is seen as a strategic move to combine Intel's chips with Nvidia's flagship products, which is currently unmatched by other third-party chips [5]. - The partnership may help Intel achieve the necessary production capacity for its upcoming 14A manufacturing process, potentially enhancing its manufacturing viability [5]. - Nvidia's core GPU business heavily relies on TSMC's advanced processes, and investing in Intel serves as a strategic hedge against geopolitical risks and capacity constraints [5]. Group 4: Financial Impact - Nvidia's CEO stated that the opportunity could be worth up to $50 billion annually, with UBS estimating that this investment could separate Intel's product and foundry businesses, raising its valuation to $35-40 per share [7]. - Intel's stock surged 23% following the announcement, marking its largest single-day increase since October 1987, while Nvidia's stock rose 3.5% [9]. Group 5: Competitive Landscape - The collaboration is expected to provide Intel with a new opportunity to compete in the AI race, as it has struggled with profitability and market share losses [9]. - If Nvidia's investment accelerates the separation of Intel's product and foundry businesses, it could pose a challenge to competitors like AMD within a 3-4 year timeframe [9]. Group 6: Additional Developments - Nvidia has also signed a letter of intent with OpenAI to establish a strategic partnership, enabling OpenAI to utilize Nvidia's systems to build and deploy at least 10 gigawatts of AI data centers [11]. - This partnership further fuels the AI infrastructure boom and contributes to the upward momentum of the Nasdaq index [11].