Nvidia has announced it will invest US$5-billion in Intel, throwing its heft behind the struggling US chip company weeks after the White House engineered a deal for the US government to take a massive stake in the company.
Nvidia’s support represents a new opening for Intel after years of turnaround efforts at the famed US manufacturer failed to pay off. Intel shares surged 30% in pre-market action.
Here are some top initial comments from analysts on the deal.
Matt Britzman, senior equity analyst, Hargreaves Landsdown
“Nvidia’s $5-billion investment in Intel is less about money and more about influence. For Intel, this is another welcome boost, both financially and strategically, as it leans on Nvidia to stay competitive. But even with the US government and Nvidia on side, it’s one step short of a home run for the foundry business, which is struggling to attract the major customers it needs to succeed against the might of TSMC.
“For Nvidia, the financial impact is small, but the political upside is big: this move aligns with US policy and could help ease restrictions on selling advanced chips to China. It also signals a shift in industry dynamics, with ARM losing some exclusivity and AMD facing more pressure. In short, this is a strategic alliance with geopolitical undertones, not just a balance-sheet transaction.”
Robert Pavlik, senior portfolio manager at Dakota Wealth
“The association with Nvidia helps a lot, just having access to their intellectual property. For a company that’s sort of struggling to develop AI-needed products, it goes a long way and helps sort of stabilise and give some credence to a company that has been under question for some time.
Read: Silicon socialism? Intel joins ranks of ‘too big to fail’
“It’s a good move. Nvidia certainly has the cash to do it. So, why not? Why not try to make an investment and see what happens with it?”
Chris Beauchamp, chief market analyst at IG Group, London
“It’s impressive to see the share move and once again from the US government taking a stake in Intel and then Nvidia sprinkling its magic is going to move the share price. It’s a reflection of Nvidia looking to diversify to an extent its investment within the US and as well to gain some brownie points with the US government.
It doesn’t change the bigger problem which Nvidia is facing with China, but it keeps it in favour with the US government. It’s a sign that Nvidia has to broaden out its own operation and it’s a sign of Intel looking to become far more of a player within the market.”
Ipek Ozkardeskaya, senior analyst at Swissquote Bank
“What Intel needs right now is a viable model and to make sure that clients are interested in this product. So this agreement from Nvidia to invest as much as $5-billion to somehow co-develop chips for PCs and data centres is fresh news for Intel.
“Intel needed a partner and Nvidia is the best partner for a company where investors are mostly in doubt about the future and the company’s ability to get back on the seat having lost the AI turn.
“For Nvidia, it is possible that this decision is politically backed because what the US government wants is these companies producing chips in the US and they have also taken a stake in Intel in order to force them to build that Ohio plant, which would be one of the world’s biggest chip-making plants in the US. ”
Art Hogan, chief market strategist, B Riley Wealth, New York
“This still has to pass regulatory approval and it doesn’t mean that Nvidia necessarily is going to be producing its current GPUs at the Intel fab that’s opening. They’ll likely continue to have to do that manufacturing with Taiwan Semiconductor, but it’s a step in the right direction for US manufacturing.” — Johann M Cherian, Shaswat Chauhan, Akriti Shah, Sukriti Gupta, Purvi Agarwal and Tristan Veyet, (c) 2025 Reuters
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