CHENNAI: In a landmark move for the semiconductor sector, Nvidia has announced a $5 billion investment in Intel, acquiring shares at $23.28 apiece. The deal is accompanied by a broad strategic partnership aimed at developing next-generation computing and AI products, marking a rare collaboration between two longtime rivals.
As part of the agreement, Intel will design custom x86 processors for Nvidia’s data center platforms and create system-on-chips for personal computing that integrate Nvidia RTX GPU chiplets. The partnership also includes the use of Nvidia’s NVLink interconnect technology to link Intel CPUs and Nvidia GPUs more tightly, improving bandwidth and reducing latency, the Western media reported on Thursday.
The news sent Intel’s stock soaring more than 30% in early trading, while Nvidia shares rose modestly by around 2–3%. According to industry analysts quoted in the reports, the deal could provide Intel with both financial strength and renewed credibility as it seeks to recover from years of manufacturing delays and intense competition.
For Nvidia, the partnership enhances its ability to control more of the computing stack, especially in AI infrastructure, by aligning closely with a major CPU provider. It also reduces its reliance on external bottlenecks and gives it greater influence over integrated solutions that combine CPUs and GPUs.
The development poses new challenges for rivals. AMD, which has built its market position on strong CPU-GPU integration, may face tougher competition if Intel and Nvidia successfully execute on their roadmap. TSMC, which manufactures many of Nvidia’s advanced chips, could also see part of its business shift if Intel’s foundry regains ground.
However, the partnership carries risks. Intel’s record of delays raises concerns about whether it can deliver on ambitious multi-generational product timelines. Integration of CPU and GPU components through advanced interconnects is technically complex and could face execution hurdles. Regulatory approval is also required, and given the scale of the tie-up, scrutiny is expected.
Despite these risks, the agreement signals a broader industry trend toward tighter integration of computing components, driven by AI and high-performance workloads. If successful, it could reshape competitive dynamics in data centers and personal computing, while offering Intel a pathway back into relevance and strengthening Nvidia’s dominance in AI infrastructure.