Intel Soars 22% After Nvidia’s $5 Billion Investment

Intel shares jumped 22.8% on Thursday after Nvidia announced a $5 billion investment in the chipmaker, marking Intel’s best trading day since October 1987.

Nvidia said it will purchase shares at $23.28 each as part of an agreement to co-develop data center and PC chips with Intel. The deal does not include the manufacturing of Nvidia chips in Intel’s foundries.

Intel closed at $30.57, while Nvidia gained 3.5% on the day.

“This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem,” Nvidia CEO Jensen Huang said in a statement.

The investment adds Nvidia to a list of recent Intel backers. In August, the U.S. government purchased a 10% stake valued at $8.9 billion, now worth $13.2 billion at Thursday’s close. SoftBank also invested $2 billion last month.

White House deputy press secretary Kush Desai called the Nvidia partnership a “major milestone for American high-tech manufacturing,” though officials said the administration was not involved in brokering the deal.

Intel shares had fallen to their lowest level in more than a decade earlier this year. Thursday’s rally reflects renewed investor optimism as the company pushes to stabilize its business with support from government and industry partners.

Intel will build x86 CPUs for Nvidia’s AI infrastructure and PC system-on-chips using Nvidia’s RTX GPUs, according to the release.

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