https://www.reuters.com/world/asia-pacific/nvidia-bets-big-intel-with-5-billion-stake-chip-partnership-2025-09-18/
This is more than OK given that Nvidia has plenty of money to lose.
Read some of the analyst comments, many of which describe this as a seismic change for Intel.
Analysts are predisposed to be optimistic. People here are predisposed to be pessimistic. The answer lies somewhere in the middle.
"$5 billion isn't that much money."
If Intel doesn't want it, I'll take it.
Read some of the analyst comments, many of which describe this as a seismic change for Intel.
Also some speculation that this could eventually lead to Nvidia buying Prodco, or most of it anyway.
One analyst compared it to the late 1990s bottom for Apple, although it is highly unlikely that Intel could ever see the kind of revenue scaling that enabled the big run in AAPL.
Short term, it will lead to increased demand for packaging and that should help reduce the foundry losses by some billions per year. Grok is also going to use Intel packaging, and these large customers are not getting much attention by the press but packaging is profitable.
Stock is probably more at risk of a big NVDA retest now than it was previously, but I'd see any retest to $26 or $23 as time to add shares. This could be the start of a 5x to 10x run over the next few years, especially if Foundry eventually picks up some large customers.
NVDA CEO stated this is for product which should generate $25B to $50B in revenue, and that it will use foveros for packaging, so it should add billions to foundry revenue.
Doesn't seem like it puts IFS in the black but certainly a lot less red than it was, and another nice win for the NM site.
@OP both CEO cobfirmed this had been in the works for 1 year…which means sound minds had an idea this would make good products and solutions in the market under that last leaders helm.
Pat, MJ , Justin
Were they at all involved?
Or is this only a politically convenient deal?
Time will tell
@b9 Jenson is a smart business man. This investment is a small token to get Trump's good side and he'll loosen international markets for Nvidia.
Let's see how this plays out in the long run, as $5B doesn't provide a red carpet to success. In a few years; we'll have a new administration and Nvidia could abandon the idea.
Not sure if Intel even has an engineering team that can pull this off, as they've lost too many skilled people.
Jenson said in an interview today that the purchase of the stock was part of a deal that he expected to generate $25-$50B in revenue, and that the deal did not involve the bad orange man.
Ok fine, he did not call him the bad orange man, but this is a big win for revenues down the road. That is why the stock is up, not because he got $5b at $23/sh.
Looks a lot like the mega cap tech companies are each lining up to do something like this.
If so then the idea that they will all go in on IFS is happening, just not as an outright IFS investment.
Only Intel can begin the day 30% up, then close in the red. Just watch. There are still two hours until the market closes, and INTC is already circling the drain.
From Reuters article..
"This new pact includes a plan for Intel (INTC) and Nvidia (NVDA) to jointly develop PC and data center chips, but crucially will not involve Intel's (INTC) contract manufacturing business, known as a "foundry" in the chip industry, making computing chips for Nvidia (NVDA). Intel's (INTC) foundry business will, however, supply the central processors and advanced packaging for the joint products."
Trump pushed Nvidia to invest and rescue Intel, before it goes bankrupt.
Nvidia wants to please Trump, otherwise Trump will add high tariff.
Can Intel actually do it, without dragging partner down for several years? Intel managements are internally very hostile to other companies. They claimed and told dev team “Intel will not use others product, no Nvidia, no Oracle…”.
$5 billion isn't that much money. Intel has lost more that 3.5 times that much in a single year in the recent past. Product development means products that won't generate revenue for 1-2 years at best. There is plenty of things that can go wrong but it is still a sign of potential life for the company. It just needs to not be mismanaged which is the real gamble here.
So you're telling me there might be a chance?
This site is full of comments which have not aged well.
Just imagine the grinding of teeth by those who got the direction so terribly wrong.
Stock always waits till RSUs are sold before doing a rally, so needed the recent layoff sheeple to dump their RSUs.
60% of the time, it works every time.
Trump made them do it.
This happened at the same as when China announced they will no longer buy chips from Nvidia. What likely happened:
IMO, if you're investing in Intel, it's a signal you are company in decline.
Nvidia finally wisened up and realized they were going to lose.
If you had bought it then, you'd be thanking me now!
@a9 LOL!
https://www.youtube.com/watch?v=KkUeztGivQg
@a5 and clearly you sound like someone who'll manage it wisely. 😆
I'm rich! I'm a rich 'un. I'm a rich boy. Me, I'm gonna have more money than you ever thought you could have - you and all the rest of you stinkin' sons of...
https://www.wsj.com/tech/ai/nvidia-intel-5-billion-investment-ad940533?st=uKzc9X&reflink=desktopwebshare_permalink
Bye bye Intel graphics team