NVIDIA Corporation (NASDAQ:NVDA) is one of the 8 best American stocks to buy and hold in 2026. According to a Form 8-K filing with the U.S. Securities and Exchange Commission, the company completed its purchase of $5 billion in shares from Intel on December 29. Under the deal, Intel sold 214,776,632 shares of its common stock to Nvidia at $23.28 per share, generating a total of $5 billion in cash. Following the announcement, NVDA shares dropped in premarket trading on December 29.
This deal is viewed as a strategic investment by Nvidia in a company that has faced financial headwinds and shrinking market share. NVDA first announced plans for the $5 billion investment in Intel on September 18, 2025. The two companies also agreed to jointly develop chips for PCs and data center applications as part of the broader agreement.
Nvidia CEO Jensen Huang expressed his thoughts about the collaboration by saying:
”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.”
Mizuho Securities analyst Vijay Rakesh reaffirmed his Buy rating on the stock on December 29. He also maintained a $245 price target for the shares, implying a further 30.17% upside from current levels. This upside is consistent with the median analyst upside estimate of 32.82%, based on 69 analysts covering the stock on Wall Street.
NVIDIA Corporation (NASDAQ:NVDA) is a computing infrastructure company. The company offers graphics and computing & networking solutions across the United States, China, Singapore, Hong Kong, Taiwan, and internationally. It operates through the Compute & Networking and Graphics segments.
While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.