Nvidia and Intel have announced a major partnership to develop multiple generations of x86 products. As part of the deal, Intel CPUs will be tightly integrated with Nvidia RTX graphics chiplets for consumer gaming PCs, branded as “Intel x86 RTX SOCs”. Intel will also manufacture custom x86 data center CPUs for Nvidia’s AI products aimed at hyperscale and enterprise clients.
U.S. Government Acquires 10% Stake in Intel
Recently, President Donald J. Trump announced that the United States has officially taken ownership of 10% of Intel. The U.S. government has agreed to invest $8.9 billion in Intel by purchasing 433.3 million new shares at $20.47 each, giving it a 9.9% stake in the company. As part of the deal, the government will also receive a five-year warrant to buy an additional 5% of Intel’s common shares at $20 per share, which can be exercised if Intel’s ownership in its foundry business drops below 51%.
Stock Market Reaction
Following the announcements, shares of both companies surged in premarket trading:
- Nvidia: +2.5%
- Intel: +32%
Impact on U.S. Semiconductor Stocks
Other U.S. semiconductor stocks also rose premarket after the news:
- Applied Materials: +4.9%
- Lam Research: +3.3%
- Marvell Technology: +2.4%
- Micron Technology: +2.3%
Meanwhile, TSMC, a U.S.-listed Taiwanese semiconductor company, dropped 1.5% premarket following the announcement.
European Semiconductor Market
European semiconductor shares extended gains, reflecting optimism from the Nvidia-Intel deal. Key performers include:
- ASML: +4.7% to +7.2%
- ASM International: +4.7% to +7.2%
- STMicroelectronics: +4.7% to +7.2%
- AIXTRON: +4.7% to +7.2%
What This Means
The Nvidia-Intel partnership marks a major milestone in the semiconductor industry. By integrating Intel CPUs with Nvidia RTX graphics and creating custom data center CPUs for AI, the collaboration is expected to strengthen both companies’ positions in gaming and AI markets. Investors have reacted positively, boosting semiconductor stocks globally.
Conclusion
The $5 billion investment by Nvidia in Intel, along with the U.S. government’s 10% stake acquisition, underscores the strategic importance of Intel in both gaming and AI sectors. These developments highlight the growing role of government and private investments in shaping the global semiconductor market.
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