Intel's stock price surged 32%! Nvidia invested $5 billion in Intel to jointly develop PC and data center chips.

On September 18th, Intel's pre-market share price surged by 32%, while Nvidia's also rose by over 3%. Nvidia announced a $5 billion strategic investment in Intel, and the two companies will collaborate on PC and data center chips.

This unexpected partnership not only provides critical financial support for Intel but also signals a significant shift in the competitive landscape of the semiconductor industry.

According to the agreement disclosed by the two parties on Thursday, Nvidia will purchase Intel common stock at a price of $23.28 per share, a discount of approximately 6.5% to the previous day's closing price.

Based on Intel's market capitalization of approximately $116 billion as of Wednesday, Nvidia's investment represents less than 5% of the company's equity. Nvidia's market capitalization has now exceeded $4 trillion, firmly establishing its position as a leader in the global semiconductor industry.

In terms of the collaboration, Intel will integrate Nvidia's graphics processing technology into its next-generation PC chips and provide processors for data center products based on Nvidia hardware.

Although the specific product launch date has not yet been announced, both companies emphasized that the partnership does not alter their respective independent development strategies.

This investment is significant for Intel. In recent years, Intel has faced continued pressure in the high-performance chip market, making it difficult to solely finance the high investments required for advanced process R&D. In the past few months, Intel has secured support from the US government with a 10% stake, a $2 billion strategic investment from SoftBank Group, and accelerated its financing process through asset sales. Former President Trump has also publicly endorsed the company.

Nvidia's entry further strengthens Intel's financial security and strategic stability.