Why Intel Rallied in September

Core Viewpoint - Intel's stock surged 37.8% in September, driven by significant investments and partnerships, particularly from Nvidia, which invested $5 billion and announced key product collaborations [1][2]. Investment Highlights - The U.S. government converted its CHIPS Act grant into a roughly 9% equity stake in Intel, while Softbank invested $2 billion [1]. - Nvidia's $5 billion investment at $23.28 per share represents about a 4% ownership stake in Intel [4]. Partnership Details - The partnership includes two major product collaborations: Intel will integrate its data center CPUs with Nvidia's AI GPU server ecosystem, and Nvidia will integrate its GPU technology with Intel's CPU architecture for PCs [5]. - Nvidia has developed its own "Grace" CPUs based on Arm architecture, but Intel's Granite Rapids Xeon 6 CPU remains the reference design for Nvidia's DGX B300 server systems [6]. Market Position - Despite losing its near-monopoly, Intel still holds over 76% of the consumer PC market, while Nvidia dominates AI servers [8]. - The collaboration aims to stabilize and potentially grow Intel's market share in PCs and servers, despite some dilution from Nvidia's investment [9].