Nvidia to Invest $5 Billion in Struggling Rival Intel Meta

TL;DR:

Nvidia will invest $5 billion in Intel by buying common stock.
The deal includes plans to co-design chips for data centers and PCs.
Intel shares surged over 20 percent after the news.
The move follows large workforce cuts and a deep Intel reset.
Analysts see potential help for Intel’s next-gen manufacturing.

On 18–19 September 2025, Nvidia said it will invest $5 billion in Intel by purchasing common stock, part of a broader collaboration on future chips. Nvidia and Intel also plan to co-design products for PCs and data centers. Markets rallied, with Intel up more than 20 percent intraday and Nvidia modestly higher.

Why Nvidia and Intel are pairing up

Nvidia dominates AI accelerators. Intel needs partners while it restructures. Reuters reports the tie-up could help Intel’s manufacturing roadmap, including its advanced 14A process targeted later this decade. Even without Nvidia immediately fabbing GPUs at Intel, the collaboration could boost volumes in Intel Foundry and align Intel CPUs more tightly with Nvidia platforms.

Bloomberg adds that Nvidia and Intel will co-develop chips spanning PCs and data centers, bringing Nvidia’s AI strengths closer to Intel’s x86 ecosystem.

The backdrop at Intel

Intel has been cutting costs and jobs in 2025 while reconsidering parts of its foundry strategy. Reports indicate 20 percent plus workforce reductions, with further trimming flagged through year-end as the new CEO pursues a leaner plan.

What it could mean for the industry

AMD pressure. Reuters notes tighter Nvidia-Intel links could challenge AMD in PCs and servers if NVLink and Intel CPUs ship as a packaged combo.
Manufacturing options. Even if Nvidia keeps flagship GPUs at TSMC, Intel could win packaging or CPU-adjacent work, helping fill fabs and justify new nodes.
Policy currents. Coverage ties the deal to U.S. efforts to shore up domestic chip capacity and reduce exposure to overseas supply risks.

What happens next

Watch for three milestones:

A formal roadmap of co-designed parts for PCs and servers.
Any disclosure on where those chips will be manufactured or packaged.
Intel’s Q4 guidance on capex and headcount after the stock pop.

Pocket guide: winners and risks

Factor	Potential winners	Risks
Co-designed chips	Nvidia, Intel, OEMs	Execution, software support
Foundry volumes	Intel	Yield, cost vs TSMC
CPU-GPU pairing	Enterprise, gov’t buyers	Lock-in concerns

Why it matters

A $5 billion check from the AI leader gives Intel time and validation. If the partnership ships real products, it could reshape the PC AI and server market, and pull some manufacturing closer to U.S. soil.

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