Nvidia has completed a $5 billion investment in Intel, formally taking a stake in the US chipmaker months after the deal was first announced.
Intel disclosed the transaction in a regulatory filing last Monday, confirming that Nvidia followed through on an agreement revealed in September. Under the deal, Nvidia purchased more than 214.7 million shares of Intel common stock at a fixed price of $23.28 per share. The shares were issued through a private placement, giving Nvidia roughly a 4% ownership position in Intel.
For Intel, the investment delivers a major cash injection at a critical time. The company has spent heavily in recent years to expand and modernize its manufacturing operations, a strategy that strained its finances after a series of execution setbacks.
The Nvidia deal is widely seen as a vote of confidence in Intel’s foundry ambitions, especially as the company moves toward higher-volume production of its next-generation 18A manufacturing process. Intel has positioned 18A as a cornerstone of its effort to compete with leading global chipmakers and attract outside customers.
Having Nvidia — the world’s most valuable semiconductor company — as a shareholder strengthens Intel’s credibility as it tries to prove it can deliver advanced chips at scale.
Nvidia’s strategic angle
The move goes beyond a financial investment for Nvidia. The company relies heavily on external manufacturers for its chips, and the Intel stake adds another strategic option as demand for AI hardware continues to surge.
While Nvidia’s core production relationships remain unchanged for now, the investment gives it closer ties to Intel’s US-based manufacturing footprint at a time when supply chain resilience and domestic production are growing priorities across the industry.
What’s next for investors?
Wall Street remains a house divided. While some analysts have set ambitious price targets of $44 or even $52 for Intel by the end of the year, others maintain a “Hold” rating until they see 18A chips shipping in high volumes.
With the US government already holding a 9.9% stake via the CHIPS Act and SoftBank also increasing its position, Intel is no longer just a struggling tech giant — it’s becoming a national project backed by the industry’s biggest winners.
Also read: US poised to loosen Nvidia chip export limits to China, a shift that could affect demand for its AI hardware.