Nvidia is investing $5 billion in Intel, becoming a major shareholder with a potential stake exceeding 4% after new shares are issued. This move aims to bolster the struggling U.S. chipmaker as it seeks to regain its footing in the industry. The investment is set at $23.28 per share, slightly below Intel’s recent closing price but above the $20.47 per share the U.S. government paid for a 10% stake last month. The White House has stated it is not involved in this deal, which follows a meeting between Nvidia CEO Jensen Huang and President Trump. The agreement includes collaboration on data center and personal computer chips but excludes Intel’s foundry services, which analysts believe require a significant customer like Nvidia to thrive. This partnership offers a vital opportunity for Intel after years of unsuccessful turnaround attempts and previous investments from Softbank and the U.S. government. Following the announcement, Nvidia’s stock rose over 3.4%, while Intel shares surged more than 29%.
