08. January 2026
Nvidia Rescues Intel With Record-Breaking 5 Billion Stock Deal
Nvidia Gives Intel a Lifeline with $5 Billion Common Stock Deal
In September, Nvidia made a historic equity investment into Intel worth $5 billion, providing the struggling American chipmaker with a much-needed lifeline. Today, Intel has officially sold 214.7 million shares to Nvidia at $23.28 per share, according to Reuters. This deal comes after the Federal Trade Commission (FTC) cleared the purchase in early December, marking a significant milestone for both companies.
The investment is a substantial one, with Nvidia acquiring nearly 36% of Intel’s outstanding shares at a price that is significantly lower than the current market value of $172.67 billion. At the time of the original announcement, the deal was valued at 6% above market price, indicating the significant interest from Nvidia in bolstering its partnership with Intel.
The purchase has sparked renewed optimism among investors and analysts, who had been closely watching Intel’s financials and operational outlook. The company’s massive capital expenditure (capex) spending had put a strain on its finances, leading to concerns about its ability to sustain itself in the face of growing competition from rival chipmakers like AMD and Taiwan Semiconductor Manufacturing Company (TSMC).
Additionally, Intel faced growing national security concerns over CEO Lip-Bu Tan’s former ties to China, which led to President Trump seeking to oust Tan from his position. However, the two eventually reconciled, with Washington purchasing an $8.9 billion stake in Intel as part of a broader effort to stabilize the company.
The partnership between Intel and Nvidia is one that has been years in the making, with both companies working closely together on various projects and initiatives. The latest development is just the latest example of this collaboration, which promises to bring significant benefits to both parties.
One of the most exciting aspects of this deal is the potential for Nvidia’s expertise in artificial intelligence (AI) and graphics processing units (GPUs) to be applied to Intel’s chipmaking operations. This partnership has the potential to revitalize Intel’s foundry business, which has been gaining momentum thanks to its early adoption of High-NA EUV lithography.
High-NA EUV lithography is a cutting-edge technology that enables the creation of smaller, more powerful transistors on microchips. By adopting this technology, Intel is able to produce high-performance chips at a lower cost and with greater efficiency than ever before. This could give the company a significant competitive edge in the market, particularly when it comes to producing chips for data center and artificial intelligence applications.
The partnership between Intel and Nvidia also has implications for the broader chip industry, which is undergoing a period of significant change and transformation. The rise of 5G networks, the proliferation of Internet of Things (IoT) devices, and the growing demand for high-performance computing are all driving innovation in chip design and manufacturing.
In this context, the partnership between Intel and Nvidia could mark a significant shift in the industry, with both companies working together to develop new technologies and products that will meet the needs of emerging markets. The exact release window for the upcoming Intel x86 RTX SoCs remains unclear, but it’s likely that these chips will be major game-changers when they finally arrive.
The Intel x86 RTX SoCs are a result of years of development by both companies, and represent a significant milestone in their collaboration. These chips promise to offer unparalleled performance and power efficiency for data center and artificial intelligence applications, making them an attractive option for cloud computing providers and other organizations that require high-performance computing capabilities.
The deal has sparked widespread interest among investors, with many analysts predicting a major turnaround for Intel’s fortunes. The partnership between Nvidia and Intel is seen as a key factor in this transformation, providing both companies with the resources and expertise needed to stay ahead of the competition.
As the chip industry continues to evolve and transform, companies like Intel and Nvidia are well-positioned to take advantage of emerging opportunities. With their combined expertise in chip design and manufacturing, these companies will be able to develop new technologies and products that meet the needs of emerging markets.
The potential benefits of this partnership extend beyond Intel’s financial situation, with implications for the broader industry and society as a whole. By driving innovation in high-performance computing, 5G networks, and AI applications, Nvidia and Intel are poised to play a major role in shaping the future of technology and its impact on our daily lives.
In the world of high-tech, innovation is key, and partnerships like this one between Intel and Nvidia demonstrate the power of collaboration and cooperation. As we look to the future, it’s exciting to think about what these two companies will achieve together, and how their partnership will shape the future of the chip industry for years to come.