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Intel shares moved Monday after Nvidia completed a $5 billion purchase of Intel stock under a previously disclosed agreement, according to the companies and regulatory filings. The transaction, finalized at the end of December, gives Nvidia a significant minority stake in Intel as the two chipmakers deepen strategic and commercial ties amid intensifying global competition in advanced computing.
The purchase was completed under a September agreement that outlined Nvidia’s plan to acquire Intel shares through a direct equity investment, according to a report by Reuters. The deal was structured to avoid a takeover or control position, and Intel remains an independent, publicly traded company.
Intel confirmed the completion of the transaction in a statement, describing the investment as part of a broader effort to strengthen its balance sheet and support long-term manufacturing and technology initiatives. Nvidia said the stake reflects confidence in Intel’s roadmap and its role in the global semiconductor supply chain.
The transaction comes as Intel continues to invest heavily in chip fabrication and advanced process technologies, while Nvidia expands its influence across data centers, artificial intelligence, and high-performance computing markets. Analysts cited by Seeking Alpha noted that the deal provides Intel with capital flexibility at a time of elevated spending and intense competition from rivals in the United States and Asia.
According to PYMNTS, the agreement does not include board representation or special voting rights for Nvidia, limiting the investment to a financial and strategic partnership rather than governance involvement.
Market participants have closely watched Intel’s stock this year as the company navigates restructuring efforts, manufacturing delays, and pressure from competitors. The Nvidia investment marks one of the largest strategic equity stakes taken by a U.S. semiconductor peer in recent years.
Intel and Nvidia said no additional share purchases are currently planned beyond the terms of the September agreement. The companies added that existing commercial collaborations will continue independently of the equity transaction. The story is developing.
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