Nvidia Invests $5B in Intel, INTC Shares Surge 30%

Nvidia Corporation (NVDA) has announced a $5 billion investment in Intel (INTC), sending Intel shares soaring 30% during Thursday's trading session. The deal, pending regulatory approval, will see Nvidia acquire a roughly 4% stake in Intel, bringing recent external investments in the semiconductor giant to $16 billion.

The collaboration aims to integrate Nvidia's AI and accelerated computing technologies with Intel's CPU expertise and x86 ecosystem using NVIDIA NVLink. "AI is powering a new industrial revolution and reinventing every LAYER of the computing stack," said Nvidia CEO Jensen Huang, highlighting the strategic importance of the partnership.

This move follows earlier, unsuccessful talks between the TRUMP administration and TSMC about restructuring Intel's manufacturing business. The U.S. government had previously taken a 10% stake in Intel earlier this summer.