NVIDIA Actualizes Intel Stake Deal With Over 214 Million Stock Purchase
In Focus
- NVIDIA paid $23.38 for each Intel share
- The stock purchase gives NVIDIA approximately 4% stake in Intel
- NVIDIA’s share purchase provides a significant financial injection for Intel
NVIDIA has completed the purchase of Intel shares worth $5 billion in line with its September 2025 deal. The NVIDIA Intel stake deal marked one of the most significant cross-investment deals in the global semiconductor sector this year. According to Reuters, the AI chipmaker revealed the Intel stock purchase in a filing made on December 29, 2025.
Why NVIDIA’s Investment is Critical for Intel
NVIDIA’s $5 billion investment in Intel has been considered a major financial boost for the company after years of costly mistakes and factory expansions weakened its finances. The stock purchase provides a significant financial injection as Intel restructures its production base and focuses on innovative chipmaking and foundry services.
As competition in the chip industry intensifies, the funds will support capacity growth and technological development in the chipmaker. The investment could also create challenges for competitors like AMD and the TSMC.
NVIDIA, which achieved a $5 trillion market valuation in October 2025, purchased more than 214.7 million Intel common stock in a private placement. The company paid $23.38 per share, as set out in the September 2025 agreement.
The NVIDIA Intel deal received antitrust clearance earlier this month according to a notice posted by the Federal Trade Commission. Under the September 2025 agreement, NVIDIA’s latest investment gives the chip manufacturer approximately 4% stake in Intel.
NVIDIA and Intel to Collaborate in Chip Production
Besides the financial transaction, the agreement provides for semiconductor partnership between NVIDIA and Intel. It outlines a strategic plan that allows the two companies to co-develop data center and consumer chips based on Intel’s x86 architecture.
It remains unclear how this part of the agreement will be implemented after
NVIDIA paused trials to use Intel’s production process to manufacture advanced chips. The AI chipmaker had tested Intel’s 18A technology before halting trials and opting not to use it for chip production. The decision makes it harder for Intel to win customers for its foundry services.
But Intel says that chip production using 18A technologies is progressing well. The company recently opened a factory called Fab 52 at its Ocotillo site in Arizona. Fab 52 becomes Intel’s first factory to start mass-producing chips using its 18A technology.
How Intel Stake Could Benefit NVIDIA
Although the two companies compete in multiple chip markets, NVIDIA’s investment points to a deeper strategic interest in Intel. NVIDIA’s strategic stake will give it financial insights into Intel’s potential operational turnaround strategy.
Investors are expected to monitor Intel’s upcoming earnings report closely. They will also be paying attention to any updated capital allocation plans for insight into how the latest investment will be deployed.
They will also be checking to see whether balance sheet changes are planned. NVIDIA stock dipped 1.3% in premarket trading, while Intel’s share prices remained largely unchanged.
