Nvidia Invests $5 Billion in Intel to Co-Develop Data Center and PC Chips

Nvidia invests $5B in Intel to co-develop AI and PC chips, joining SoftBank and the U.S. in backing Intel’s rebound.

19 September 2025, 15:29 published Updated 19 September 2025, 15:29

Intel Stock Soars After $5 Billion Investment from Nvidia

In a landmark collaboration that could reshape the semiconductor landscape, Nvidia has announced a $5 billion investment in Intel as part of a broader strategic partnership to co-develop data center and PC chips. This deal arrives as Intel seeks to rebound from years of setbacks, with growing support from both private and public sector stakeholders.

Deal Details: $23.28 per Share Valuation

Nvidia’s investment values Intel shares at $23.28 each, according to a company statement. Following the announcement, Intel shares surged 22.8%, closing at $30.57, marking their best single-day performance since October 1987. Nvidia shares also rose by 3.54% in Thursday trading.

The deal, still subject to regulatory approvals, does not include any direct plans for Nvidia to manufacture its chips in Intel’s foundries—a point raised by industry analysts. Instead, Intel will build x86 CPUs for Nvidia’s AI infrastructure platforms, and for consumer PCs, Intel will manufacture x86 SoCs (system-on-chips) that integrate Nvidia’s RTX GPUs.

A Fusion of Two Industry Giants

Nvidia CEO Jensen Huang highlighted the significance of the collaboration in a press release, stating:

“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.”

The partnership brings together two of the most influential players in the chip industry, creating a hybrid architecture that blends Nvidia’s dominance in AI and graphics with Intel’s x86 legacy and manufacturing footprint.

Backed by U.S. Government and SoftBank

Nvidia now joins SoftBank and the U.S. government in supporting Intel’s ambitious turnaround efforts. In August, the Biden administration committed $8.9 billion for a 10% equity stake in Intel, purchasing 433.3 million shares. That stake, initially acquired at an implied price of around $20.54 per share, is now worth $13.2 billion based on Intel’s current share price.

White House deputy press secretary Kush Desai described the Nvidia-Intel partnership as a:

“Major milestone for American high-tech manufacturing.”

The government’s investment is part of a broader push to secure domestic semiconductor production and reduce dependence on foreign manufacturing, especially in light of ongoing U.S.-China trade tensions.

SoftBank also invested $2 billion in Intel in August, making it the second major backer before Nvidia’s entry.

Industry Reactions: Strategic Alliance or Political Optics?

While the Nvidia-Intel deal has been hailed by some as a potential game-changer, others remain cautious. In a research note, Wolfe Research analyst Chris Caso wrote:

“What’s unclear is whether this represents token cooperation intended for political purposes, or if it’s the start of a wider collaboration that would more significantly benefit Intel.”

He added that the most critical question is whether Nvidia intends to use Intel’s foundry services in the future. As of now, the deal does not include such provisions, but it sets the stage for deeper cooperation in the future.

A senior White House official confirmed that the administration was not involved in brokering or negotiating the Nvidia-Intel deal.

Technical Collaboration Over Manufacturing

According to the companies, the partnership focuses on technical integration rather than chip fabrication. Intel will continue building CPUs that run Nvidia’s AI platforms, while also co-developing PC chips powered by Nvidia’s RTX GPUs.

This strategic alignment aims to optimize hardware-software synergy, allowing both firms to strengthen their positions across data centers, AI workloads, and high-performance personal computing.

Nvidia Balances Growth Amid Geopolitical Pressures

While Nvidia deepens ties with Intel and bolsters its influence in the U.S. tech ecosystem, it continues to navigate complex trade negotiations with China. The company is currently seeking regulatory approval to export less advanced chips to the Chinese market amid rising scrutiny and export controls imposed by the U.S. government.

By reinforcing its U.S. alliances and investing in domestic manufacturing capacity through Intel, Nvidia appears to be strategically insulating itself from further geopolitical risk.

A New Era in U.S. Chip Collaboration?

The Nvidia-Intel partnership marks a rare collaboration between two long-time competitors. The deal could open doors for further integration in the AI and PC segments, and potentially reshape the dynamics of the global chip race.

Although no chip manufacturing by Intel for Nvidia is confirmed yet, this move signals a deeper industry shift: one where strategic alliances may prove just as important as raw silicon performance.