Core Viewpoint - NVIDIA announced a $5 billion investment in Intel at a price of $23.28 per share, marking a historic collaboration between the two companies to develop AI infrastructure and computing center products, aiming to accelerate applications in large-scale, enterprise, and consumer markets [2][4]. Investment Details - The investment follows Intel's recent $5.7 billion funding from the U.S. government and a $2 billion investment from SoftBank, representing Intel's first capital collaboration with NVIDIA in its 57-year history [4]. - Post-transaction, NVIDIA may hold over 4% of Intel's shares, making it one of Intel's major shareholders, which increases the value of U.S. government-held Intel shares to approximately $14 billion, yielding a paper profit of $4.9 billion since the agreement in August [4][5]. Market Reaction - Following the announcement, Intel's stock jumped 27.6% at the open, reaching a peak increase of 30%, and closing up approximately 22.8%, marking its largest single-day gain since October 1987 [4]. - NVIDIA's market capitalization increased by over $75 billion, while Intel's rose by over $27 billion, leading to a combined market value increase of over $100 billion (approximately 720 billion yuan) [5]. Strategic Rationale - The collaboration is seen as a strategic move for NVIDIA to invest in a declining Intel, with three main reasons: both companies are significant players supported by the U.S. government, Intel's x86 architecture complements NVIDIA's AI chip development, and it prepares for future mergers and business integrations [8][9]. - NVIDIA's investment is expected to provide Intel with new opportunities, especially as Intel has struggled in the high-performance chip market [9]. Future Collaboration - The partnership will focus on integrating NVIDIA's GPU AI and accelerated computing advantages with Intel's CPU technology and x86 ecosystem, aiming to provide advanced technology solutions [12][13]. - Intel will develop NVIDIA-customized x86 CPUs for data centers, while also creating integrated NVIDIA RTX GPU chipsets for personal computing [13]. Industry Context - The collaboration comes amid increasing competition in AI computing power, particularly between the U.S. and China, with NVIDIA facing export restrictions on AI chips to China [17][20]. - NVIDIA's CEO expressed disappointment over the current state of the Chinese market, which has seen a decline in revenue, despite the potential for significant opportunities [20][21].