Intel, Nvidia shares gain after FTC clears $5 billion strategic investment

Shares of Intel and Nvidia rose sharply after US regulators approved Nvidia’s $5 billion investment in Intel, a deal aimed at joint chip development and supporting Intel’s turnaround amid growing demand for AI infrastructure.

Shares of Intel and Nvidia climbed more than three percent after the US Federal Trade Commission approved Nvidia’s proposed $5 billion investment in Intel, easing regulatory uncertainty around one of the most closely watched technology partnerships of the year. The clearance is seen as a key step in strengthening Intel’s recovery efforts while expanding Nvidia’s reach across data centre and personal computing markets.

The investment, first announced in September, values Intel shares at $23.28 each and marked a strong vote of confidence in the chipmaker, which has been working to regain competitiveness in advanced manufacturing and AI-focused processors. At the time of the announcement, Intel’s stock had surged sharply as investors welcomed Nvidia’s backing.

Joint chip development plans

As part of the agreement, Intel and Nvidia plan to collaborate on developing next-generation chips for data centres and personal computers. Intel will manufacture x86 central processing units for Nvidia’s AI infrastructure platforms, combining its processor technology with Nvidia’s leadership in accelerated computing.

For consumer and enterprise PCs, Intel is expected to produce x86 system-on-chips that integrate Nvidia’s RTX graphics processors, enabling more powerful AI-enabled computing experiences across a wide range of devices. Nvidia CEO Jensen Huang has described the partnership as a major convergence of two established technology platforms, aimed at shaping the next phase of computing.

Industry analysts have welcomed the deal, calling it strategically significant for both companies. Experts note that if execution meets expectations, the collaboration could give data centre customers greater choice and help accelerate the adoption of AI-powered Windows PCs without disrupting existing technology roadmaps.

Broader support for Intel’s turnaround

Nvidia’s investment adds to a series of high-profile backers supporting Intel’s turnaround strategy. The US government has committed substantial funding to Intel as part of its domestic semiconductor push, while SoftBank Group has also invested billions in the company.