Catenaa, Thursday, September 18, 2025- Nvidia said on Thursday it would invest $5 billion in Intel, throwing its heft behind the struggling chipmaker just weeks after the US government gained a major stake.
Nvidia’s support represents a new opening for Intel after years of turnaround efforts at the famed US manufacturer failed to pay off.
The company, once the chip industry’s flagbearer that claimed to put the “silicon” in Silicon Valley, appointed a new CEO, Lip-Bu Tan, in March.
The pact includes a plan for Intel and Nvidia to jointly develop PC and data center chips, but crucially will not involve Intel’s contract manufacturing business, known as a “foundry” in the chip industry, making chips for Nvidia.
Most analysts believe that for Intel’s foundry to survive, it would need to eventually win a large customer such as Nvidia, Apple, Qualcomm, or Broadcom.
Nvidia, whose must-have chips are powering a global artificial intelligence boom, said in a statement it would pay $23.28 per share for Intel common stock, a price slightly below the $24.90 at which Intel shares closed on Wednesday.
However, that is higher than the $20.47 price per share that the United States government paid for an extraordinary 10% stake it took in Intel last month.
The pact represents a potential risk to Taiwan’s TSMC. TSMC currently manufactures Nvidia’s flagship processors, a business that the world’s most valuable company could one day extend to Intel.
AMD, which competes with Intel for supplying chips to data centers, also stands to lose thanks to Nvidia’s backing.
Shares of Intel rose more than 25% on Thursday morning, while Nvidia rose more than 2.7%. AMD slipped over 5%, while TSMC slid 1.3%.
The deal adds to a growing reserve of capital that Intel has accumulated weeks after it announced a $2 billion investment from Softbank and received $5.7 billion from the US government.
