The Nvidia stake in Intel has grown after the company announced a $5 billion investment. With this deal, Nvidia joins the US government as a major shareholder in the struggling chipmaker. As a result, Intel now has strong backing from both Washington and Silicon Valley.
Nvidia will pay $23.28 per share for Intel’s common stock. Therefore, it will gain around 4% ownership once new shares are issued. This comes only weeks after the US government took a 10% stake worth $8.9 billion. Moreover, both moves show the growing focus on US semiconductor production.
President Donald Trump praised Intel as a “Great American Company.” He also said the government’s investment would secure America’s place in global technology. In addition, Trump announced 100% tariffs on imported semiconductors. However, suppliers that build products inside the US will be free from these tariffs.
Intel was once the leader in computer chips. However, it lost ground after failing to keep up with new technology waves. Although new CEO Lip-Bu Tan is trying to turn the company around, the road has been difficult. Therefore, the Nvidia stake in Intel brings much-needed support and confidence.
In addition, Nvidia and Intel will work together to design custom products for data centers and personal computers. This joint effort could speed up innovation and improve Intel’s position in the market. Moreover, it could help Intel become a stronger player in artificial intelligence.
Analysts at Wedbush Securities called the deal a “game-changer.” They said it gives the US a stronger lead in the AI race against China. As a result, the Nvidia stake in Intel could reshape global competition in the semiconductor industry.
The market reacted quickly to the news. Intel shares jumped 25% on Thursday, while Nvidia’s stock rose 2.1%. Meanwhile, investors welcomed the fresh support for Intel’s future.
In the end, Intel now has support from Nvidia, the US government, and new leadership. However, its success will depend on how fast it can deliver new innovation and win back market share.
