What happens when the king of AI chips throws a lifeline to its wounded rival?
Nvidia just stunned Silicon Valley by announcing a $5 billion stake in Intel — a bold bet that could reshape the chip industry.
The deal, revealed Thursday, gives Nvidia about 4% of Intel.
It pairs the two American giants to co-produce PC and data-center chips as the AI boom explodes.
Intel’s stock rocketed more than 25% on the news, while Nvidia’s rose 3%.
“Together, we will expand our ecosystems and lay the foundation for the next era of computing,” Nvidia CEO Jensen Huang said.
He called the partnership “a fusion of two world-class platforms.”
For Intel, the move comes at a critical time.
Chip Giants Join Forces
Once the undisputed leader in semiconductors, it has trailed Nvidia during the AI surge.
It has relied heavily on government support — including a recent 10% White House stake.
Nvidia, meanwhile, is eager to diversify production away from Taiwan’s TSMC and show goodwill to Washington, says Gil Luria of D.A. Davidson.
But not everyone’s cheering. Analysts warn the tie-up could squeeze competitors like AMD and TSMC.
Geopolitical tensions with China still cloud Nvidia’s outlook.
Still, in an industry built on chips, power, and rivalry, this partnership could be the boldest play yet.
