A landmark strategic investment has been finalized between two of the semiconductor industry’s most prominent players. Nvidia has completed a transaction to invest over $5 billion in Intel, marking a significant shift from their historical rivalry. For Intel, this capital infusion represents a crucial vote of confidence in its ongoing corporate restructuring led by CEO Lip-Bu Tan, extending far beyond a simple financial boost.
Market Response and Strategic Realignment
The deal, which closed yesterday, provides Intel with much-needed liquidity and a powerful strategic ally. Nvidia is acquiring approximately 214.8 million newly issued Intel shares at a price of $23.28 per share. This price sits notably below yesterday’s closing price of $36.63, a reflection of terms that were agreed upon back in September.
Investors have largely looked past this discount, focusing instead on the long-term strategic implications. The proceeds are earmarked for the aggressive expansion of Intel’s Foundry services business and the development of its new “18A” process technology. Furthermore, the two companies plan to collaborate on developing advanced packaging technologies for data center chips. This partnership signals a transformation in their relationship, with Intel increasingly positioning itself as a manufacturing partner for the AI market leader, which is in turn seeking stable, domestic supply chains.
Should investors sell immediately? Or is it worth buying Intel?
A Turning Point After a Challenging Period
The investment arrives as Intel’s restructuring efforts appear to be gaining traction following a difficult 2024, which saw a record net loss of nearly $19 billion and the company’s removal from the Dow Jones Industrial Average. With this move, Nvidia joins the U.S. government—which purchased shares in August—as a second major anchor investor in Intel’s turnaround story.
This positive development is clearly reflected in the company’s stock performance. Since the start of the year, Intel shares have surged more than 86%, recovering substantially from their 52-week low of $16.61. Financial analysts interpret Nvidia’s commitment as a validation of Intel’s strategic pivot toward the contract manufacturing (foundry) business as the correct path to reclaiming technological relevance.
Investor Focus Shifts to CES 2026
The attention of the investment community now turns to next week. At CES 2026 in Las Vegas, Intel is scheduled to unveil its new “Panther Lake” processors. Market observers are particularly keen to hear any indications on the potential timeline for tangible results from the technical collaboration with Nvidia. A critical factor for the stock’s future trajectory will be Intel’s ability to demonstrate that the yield rates of its new manufacturing processes are competitive on a global scale.
Ad
Intel Stock: Buy or Sell?! New Intel Analysis from December 30 delivers the answer:
The latest Intel figures speak for themselves: Urgent action needed for Intel investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 30.
Intel: Buy or sell? Read more here...
