Nvidia Finalizes $5 Billion Intel Stake, Reshaping Semiconductor Landscape

• Nvidia completed its $5 billion purchase of 214.7 million Intel Corporation shares at $23.28 each, acquiring roughly 4% ownership.
• The deal, first disclosed in September, received U.S. regulatory clearance from the Federal Trade Commission (FTC) earlier this month.
• For Intel, the capital infusion comes at a critical time, aiding its rebound from financial strain and competitive pressure, with its market valuation rising to $172 billion.
• Nvidia views the stake as a strategic long-term bet, gaining exposure to Intel's broad customer base and aligning with a former rival.
• The companies plan to co-develop next-generation chips for data centers and PCs, combining Nvidia's AI GPU/accelerator tech with Intel's CPU expertise, signaling a major industry shift.

Why It Matters: Nvidia's $5 billion Intel stake signals a strategic alliance, reshaping the competitive semiconductor and AI chip market.