NVIDIA Invests $5 Billion in Intel, Signaling Shift in AI Semiconductor Landscape
WASHINGTON D.C. – september 18, 2025 – In a surprising move, NVIDIA announced today a $5 billion investment into its rival, Intel, acquiring a stake in the semiconductor manufacturer. The deal, revealed in a joint statement, aims to accelerate the progress of next-generation products for data centers amid surging demand fueled by the artificial intelligence boom.
The investment underscores a strategic realignment within the semiconductor industry. While NVIDIA has emerged as a dominant force in AI chips, Intel, a historic leader in microprocessors, has faced pressure to catch up. This collaboration seeks to leverage the strengths of both companies, extending their ecosystems and laying the groundwork for future advancements in computing.
Under the terms of the agreement, NVIDIA will purchase Intel shares at $23.28 per title. the declaration triggered a meaningful jump in Intel’s stock price, rising between 30% and 32.4% in pre-market trading around 12:05 pm GMT.
“This is a merger of two world class platforms,” stated NVIDIA CEO Jensen huang in the press release. “Together, we will extend our ecosystems and lay the foundations for the next era of computer science.”
The investment arrives during a period of increased scrutiny and government involvement with Intel. Earlier this August, the company saw calls for the resignation of its CEO Lip-Bu Tan following allegations concerning ties to China. Simultaneously, the U.S. government sought equity in Intel in exchange for previously allocated subsidies, ultimately acquiring up to a 10% stake in the company. Additionally, SoftBank Group announced a $2 billion investment in Intel in august, aiming for a 2% ownership share.
Intel, a Silicon Valley icon, has seen its market dominance challenged by Asian competitors like Samsung. The company is striving to regain its footing in the rapidly evolving semiconductor market, particularly in the critical area of AI processing.
