Nvidia Invests $5 Billion in Intel: Nvidia Up 3%, Intel Shares Jump 30%, AMD Falls 5% Amid Chip Sector Shakeup

Nvidia has announced a significant investment of $5 billion in Intel, aiming to jointly develop data center and PC chips. This collaboration comes after Intel secured the U.S. government's backing as an investor last month. Nvidia's investment is priced at $23.28 per share, leading to a 33% surge in Intel's premarket trading shares, reaching approximately $33 each.

Nvidia's $5 billion Investment in Intel

"This historic collaboration tightly couples NVIDIA's AI and accelerated computing stack with Intel's CPUs and the vast x86 ecosystem -- a fusion of two world-class platforms. Together, we will expand our ecosystems and lay the foundation for the next era of computing," said Nvidia CEO Jensen Huang in an official statement.

Although the partnership is still subject to regulatory approvals, it notably does not include chip manufacturing services from Intel for Nvidia at this stage. However, both companies' leadership-Nvidia CEO Jensen Huang and Intel CEO Lip-Bu Tan-are expected to discuss the deal further during a press conference scheduled at 1 p.m. ET.

Intel Share Price Surges After Nvidia's Investment Announcement

Shares of Intel surged by 30.3% to reach $32.45 in premarket trading following Nvidia's announcement of a $5 billion investment in the chipmaker as per Reuters. This collaboration aims to develop chips for PCs and data centers together. Nvidia will acquire Intel common stock at $23.28 per share, which is slightly lower than Intel's last closing price of $24.90 on Wednesday.

Nvidia Share Price Today in Premarket Trading

Shares of Nvidia rose by 3.3% to $175.94 in premarket trading on Thursday, as the company remains actively engaged in trade negotiations between the United States and China as Reuters reported. The talks aim to secure regulatory approval for Nvidia to sell its less-advanced chips in the Chinese market, amid ongoing geopolitical tensions and export restrictions.

The announcement has positively impacted both companies' stock performance.

Intel's Competitor AMD Share Price Today

Meanwhile, Advanced Micro Devices (AMD), one of Intel's primary rivals in the semiconductor industry, witnessed a sharp decline in its stock value. The company's shares fell by 4.7%, settling at Rs 151.88