Nvidia Dips Near 2% After Closing $5B Intel Share Buy Monday

Nvidia buys roughly 4% of Intel in $5B private placement, plans NVLink integration to pair its AI stack with Intel CPUs as AI chip demand surges

  • NVIDIA completed a private purchase of about 214.7 million shares of Intel, equal to roughly a 4% stake.
  • The deal was executed under the September agreement and disclosed in Monday’s filing, after which Nvidia stock fell just under 2% while Intel shares rose.
  • The companies plan to integrate architectures using NVIDIA NVLink and combine NVIDIA’s AI stack with Intel CPUs and the x86 ecosystem.
  • Outside investment in Intel now totals about $16 billion, alongside a separate $10 billion U.S. government investment.
  • A MarketsandMarkets report projects the AI chip market could reach $565 billion by 2032, highlighting demand for AI hardware.

First paragraph: Nvidia completed its September agreement to buy $5 billion of Intel stock on Monday, acquiring more than 214.7 million shares in a private placement, according to Monday’s filing. The transaction represents roughly a 4% stake in Intel and follows earlier announcements that had driven rallies in both companies’ shares.

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Nvidia shares dipped just under 2% after the purchase, while Intel shares rose. The deal adds to recent outside investment in Intel, bringing external commitments to about $16 billion, in addition to a separate $10 billion U.S. government investment intended to strengthen domestic chipmaking.

The companies said they will focus on connecting their platforms through NVIDIA NVLink. NVLink is a high-speed interconnect technology that allows fast data transfer between processors. The plan pairs NVIDIA’s AI and accelerated computing with Intel’s CPUs and the x86 ecosystem; x86 refers to a widely used CPU instruction set architecture for personal computers and servers.

Jensen Huang, founder and CEO of Nvidia, described the collaboration in September, saying: “AI is powering a new industrial revolution and reinventing every layer of the computing stack — from silicon to systems to software. At the heart of this reinvention is NVIDIA’s CUDA architecture,” and “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.” CUDA is NVIDIA’s parallel computing platform and programming model for GPUs.

A recent report from MarketsandMarkets estimates the AI chip market could grow to about $565 billion by 2032, driven by needs for real-time analytics and advanced AI models.

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