SPDB International·2025-09-19 11:23Investment Rating - The report maintains a "Buy" rating for Nvidia, emphasizing its strong position in the AI chip market due to the strategic partnership with Intel [2]. Core Insights - Nvidia's investment of $5 billion to acquire a 4%-5% stake in Intel is seen as a strategic move to enhance collaboration in AI chip development, leveraging both companies' strengths [1][2]. - The partnership aims to integrate Nvidia's AI chips with Intel's x86 CPU architecture, which is expected to drive growth in the AI chip sector and improve market sentiment for Intel [2]. Summary by Sections Nvidia's Investment in Intel - Nvidia will invest $5 billion to purchase Intel's common stock at $23.28 per share, pending regulatory approval [1]. - This investment follows previous significant investments in Intel, including $2 billion from SoftBank and $8.9 billion from the U.S. government [1]. Strategic Collaboration - The collaboration will focus on developing customized products, including tailored x86 CPUs from Intel for Nvidia's AI infrastructure and x86 SoC chips integrated with Nvidia's RTX GPUs for the consumer PC market [1]. - The partnership is expected to expand AI applications across large cloud service providers, enterprise, and consumer markets [1]. Market Implications - The report suggests that Nvidia's AI chips will benefit from increased support from Intel's x86 ecosystem, solidifying Nvidia's market position [2]. - Intel's influx of capital from multiple investments is anticipated to enhance its strategic initiatives and capitalize on the growing demand for AI computing power [2].