Intel stock soars as Nvidia announces $5B investment, joint chip development
Intel shares surged more than 30% on Thursday after Nvidia revealed plans to invest $5 billion in the company and co-develop new data center and PC chips.
Nvidia is investing its stake at a price of $23.28 a share, a release from the company said. Intel shares jumped 33% to around $33 a share in premarket trading following news of the deal, News.Az reports, citing foreign media.
“This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem -- a fusion of two world-class platforms. Together, we will expand our ecosystems and lay the foundation for the next era of computing,” said Nvidia CEO Jensen Huang in a release.
The investment, which is subject to regulatory approvals, does not appear to include the manufacturing of Nvidia chips with Intel’s foundry. Huang and Intel CEO Lip-Bu Tan will hold a press conference on the deal at 1 p.m. ET.
Shares of Nvidia, which is in the middle of U.S. and China trade negotiations to get approval to sell less-advanced chips in China, was up 3% in premarket trading.
Intel shares, which hit the lowest in more than a decade earlier this year, have rebounded after finding renewed support from the Trump administrating, striking a deal for the U.S. government to invest 10% in the chipmaker last August. Intel shares were up 11% since the start of July heading into Thursday’s trading.
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