In a stunning move in the semiconductor industry, NVIDIA and Intel will jointly develop multiple generations of custom data centre and personal computing products that accelerate applications and workloads across hyperscale, enterprise and consumer markets.
The move will tightly couple NVIDIA’s AI and accelerated computing technologies with Intel’s CPUs and x86 ecosystem.
NVIDIA will invest the US$5 billion in Intel common stock at US$23.28 per share, pending regulatory approvals, while Intel will manufacture new generations of processors for NVIDIA’s AI infrastructure platforms, and integrate NVIDIA RTX chiplets into a new class of x86 system-on-chips for PCs.
“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,” said Jensen Huang, Founder and CEO of NVIDIA.
“Intel’s leading data centre and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA’s AI and accelerated computing leadership to enable new breakthroughs for the industry. We appreciate the confidence Jensen and the NVIDIA team have placed in us with their investment and look forward to the work ahead as we innovate for customers and grow our business,” said Lip-Bu Tan, CEO of Intel.
Stock Price Impact
The announcement had an immediate impact on stock prices with Intel shares surging by as much as 30 percent, marking one of its biggest single-day gains in decades and signalling renewed investor confidence in its future as it pivots toward AI-driven innovation. NVIDIA stock rose around three percent with share prices closing around US$176, buoyed by optimism for its expanded market reach and validation of long-term AI sector leadership.
In contrast, AMD stock fell three- to five-percent as investors reacted to potential competitive threats in both the data centre and PC markets. The alliance between its two arch-rivals could force AMD to accelerate innovation and partnership strategies to defend market share.
Arm Holdings also dropped around 4.5 percent, amid concerns that NVIDIA’s collaboration with Intel would reduce reliance on Arm’s chip architecture in next-generation computers and data centres.
Photo: KL Lim
Entelechy Asia 