FTC Clears Nvidia’s $5B Intel Investment; Stocks Surge Over 3%

Nvidia and Intel Shares Surge After US Regulators Approve $5 Billion Chip Partnership Deal

  • NVIDIA received approval from the Federal Trade Commission for its $5 billion investment in Intel.
  • The companies plan to jointly develop chips for data centers and personal computers as part of their collaboration.
  • Shares of both Nvidia and Intel rose by over 3% following the FTC’s decision.
  • The U.S. government and SoftBank Group have also made significant investments in Intel in recent months.

Nvidia will invest $5 billion in Intel at a share price of $23.28, a move announced in September and recently cleared by the Federal Trade Commission, according to an official FTC notice. This deal is designed to support Intel’s turnaround and to establish a collaborative partnership between the two semiconductor giants.

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Under this agreement, Nvidia and Intel will work together to create chips for use in both data centers and personal computing devices. Specifically, Intel will manufacture x86 central processing units (CPUs) to support Nvidia’s Artificial Intelligence infrastructure, as well as x86 system-on-chips that integrate Nvidia’s RTX graphics processing units (GPUs) for a wide range of PCs. Nvidia CEO Jensen Huang described the partnership as “a fusion of two world-class platforms. Together, we will expand our ecosystems and lay the foundation for the next era of computing.”

Analyst Patrick Moorhead called the transaction a “huge deal,” noting that it provides a credible scaling path for Windows AI PCs and additional x86 choices for data center customers using Nvidia platforms, as quoted in statements.

Earlier in August, the U.S. government invested $8.9 billion in Intel, acquiring a 9.9% stake at $20.47 per share. SoftBank Group supplemented this with its own $2 billion investment. Following news of the Nvidia deal’s approval, shares for both Nvidia and Intel climbed more than 3%. Intel shares had previously soared by 22.8% when the investment was first announced.

While retail investor sentiment remained cautious on trading platforms, both Nvidia and Intel have recorded significant stock gains this year. Nvidia shares are up 35%, and Intel has increased by 87%, according to available data.

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