Intel Soars 24% on $5B Nvidia Deal and AI Collaboration

Intel Corporation's stock surged 24% to $30.97 intraday following Nvidia's $5 billion investment and a joint AI chip initiative. The partnership focuses on developing custom CPUs and AI hardware, with Intel manufacturing chips for Nvidia's advanced platforms. This marks a potential turnaround for Intel amid recent struggles.

Nvidia's investment includes acquiring a 4% stake in Intel at $23.28 per share, pending regulatory approval. The deal strengthens technology ties between the two giants and brings Intel's recent external investment total to $16 billion, including prior commitments from the US government and SoftBank.

The collaboration signals renewed market confidence in Intel's long-term value and positions the company at the forefront of AI-driven hardware innovation. The CPU-GPU fusion initiative could reshape competitive dynamics in the semiconductor industry.