Nvidia, the size of an Intel chip a decade ago, to now invest $5 billion in saving the giant
Published on 19/09/2025 05:22 AM
Nvidia, the size of an Intel chip a decade ago, to now invest $5 billion in saving the giantThis marks another fund infusion for Intel after the US government picked up a 10% stake last month, while SoftBank announced a $2 billion investment.By Hormaz Fatakia September 19, 2025, 5:22:26 AM IST (Updated)2 Min ReadAt the start of 2014, Nvidia, known for suppling processors for video games, had a market capitalisation of just over $9 billion. On the other hand, Intel, the undisputed chip giant, commanded a $130 billion value, making it one of the most valued tech companies.
A decade later, the nearly-$4 trillion worth Nvidia, the most valued company on the planet, will be investing half of its 2014 market cap in the struggling and stagnated Intel, as part of a deal to co-develop data centres and PC chips.
Nvidia will be buying intel shares at $23.28 apiece, sending shares of the once chip industry leader soaring by 23%. Thursday's move was the biggest in a single session for Intel going back to October 1987.
Intel and Nvidia have framed their agreement in a way that allows them to move into areas of the computer market that they do not currently cater to. According to Nvidia CEO Jensen Huang, that opportunity could be worth $50 billion annually.
This marks another fund infusion for Intel after the US government picked up a 10% stake last month, while SoftBank announced a $2 billion investment. The company is also raising cash by selling assets to investors. On paper, the value of the US government investment has now surged by more than 55% to nearly $14 billion.
“We thought it was going to be such an incredible investment,” Huang said on a conference call Thursday with his Intel counterpart, Lip-Bu Tan. “The return on that investment is going to be fantastic.”
As per the deal, Intel will offer PC chips that combine the general purpose processing with powerful graphics components from Nvidia, helping it compete with rival AMD, which has been gaining market share in the laptop and desktop market. No timeline has been shared as to when the parts made by both would go on sale.
While Nvidia's shares surged over 3%, those of AMD fell nearly 6% after the announcements were made.
The news is “very marginally negative for AMD,” Wolfe Research analysts said in a note, and likely doesn’t change their thesis for Intel. “What’s unclear is whether this represents token cooperation intended for political purposes, or if it’s the start of a wider collaboration that would more significantly benefit Intel,” they said.Continue ReadingFirst Published: Sept 19, 2025 5:20 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagschipsIntel CorpNvidiaNvidia market capNvidia share price