By John Meyer, consultant in business – Eurasia Business News, September 18, 2025. Article no 1791
Nvidia announced on September 18 a $5 billion investment in Intel, marking a significant partnership between the two semiconductor giants. Nvidia will purchase Intel common stock at $23.28 per share, acquiring about a 4% ownership stake in the company. This deal follows the U.S. government’s recent acquisition of a 10% stake in Intel.
The collaboration focuses on jointly developing custom chips for data centers that support artificial intelligence infrastructure and personal computing products. Intel will manufacture chips that integrate Nvidia’s GPU technology for PCs, while Nvidia will use custom Intel chips in its AI infrastructure platforms.
The investment provides a crucial lifeline for Intel, which has struggled financially and operationally in recent years, facing losses and workforce reductions. Nvidia CEO Jensen Huang described the partnership as historic, combining Nvidia’s AI and accelerated computing technology with Intel’s CPUs and the extensive x86 ecosystem to lay the foundation for the next era of computing.
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The market responded positively, with Intel shares soaring by about 25%—its biggest single-day gain in decades—and Nvidia shares up around 2%. This partnership shifts Intel from being a lagging player to a more central role in the AI-driven semiconductor market, challenging competitors like AMD and Taiwan’s TSMC.
On July 15 Nvidia secured approval from the U.S. government, under the Trump administration, to resume sales of its H20 AI chip to China, reversing the export ban imposed in April 2025. This permission follows extensive lobbying and a meeting between Nvidia CEO Jensen Huang and former President Donald Trump, with the administration committing to issuing export licenses soon.
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