Nvidia (NVDA.US) announced a $5 billion investment in Intel (INTC.US), acquiring shares at $23.28, a discount to Wednesday's closing price. The two companies said they would collaborate on designing chips for PCs and data centers, combining Intel processors with Nvidia graphics technology.
This is an unprecedented alliance between former rivals, providing Intel with financial support and access to key solutions from the market leader in artificial intelligence. Following earlier investments by the US government and SoftBank, this move underscores the need to raise funds for development in the face of losing market share. CEO Jensen Huang emphasized that the combination of x86 and AI platforms creates the foundation for a “new era of computing.” For Intel, the collaboration is an opportunity to compete more effectively with AMD in the PC market and to better position itself in servers, where Nvidia's dominance has been unchallenged until now. The market is reacting euphorically, with Intel shares rising 20% in pre-market trading.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appSource: Yahoo Finance
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
