Nvidia is buying into Intel and building with it, but the partnership
leans on CPU and interconnect synergy, not a miracle cure for Intel’s
manufacturing woes. Still, the stock price is up.
What Nvidia is Actually Buying
Nvidia is investing $5 billion in Intel’s common stock, with the purchase
priced at $23.28 per share and subject to regulatory approvals. That is not
just a financial gesture, it sits alongside a product roadmap where the two
companies plan “multiple generations” of custom data center
Data Center
A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more
A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more
Read this Term and PC products.
The technical spine is clear. Intel will design and manufacture custom x86 CPUs
that Nvidia will integrate into its AI infrastructure platforms, and for PCs
Intel will build x86 system-on-chips that integrate Nvidia RTX GPU chiplets,
with NVLink used to connect the worlds. That is real product, not a handshake.
Join us live! The CEOs of Intel and @nvidia will host a webcast press conference today at 10 a.m. PT (1 p.m. ET) to talk about our new partnership.
Tune in here: https://t.co/z2SPmDtIjN https://t.co/3cTzXcuboq
— Intel (@intel) September 18, 2025
Nvidia’s line is that AI is remaking the stack, from silicon up. Jensen
Huang called it a “new industrial revolution,” and framed this tie-up as a way
to fuse Nvidia’s AI stack with Intel’s x86 ecosystem. Intel’s leadership
pitched Intel’s process, packaging, and platforms as a complement to Nvidia’s
acceleration lead. The upshot is simple. Nvidia gets custom CPUs aligned to its
platforms, Intel gets RTX in client silicon, and customers get a cleaner bridge
between CPU and GPU domains.
Why Is This Happening?
Follow the incentives. Nvidia wants CPU optionality that slots cleanly
into its AI infrastructure and a stronger PC story that pairs RTX with Intel’s
volume engine. Intel wants relevance in AI data centers and a differentiated
client roadmap that borrows Nvidia’s halo. Both want to tell big customers that
the bottleneck between x86 and accelerated compute is easing, thanks to NVLink
and co-design at the platform level. That is the logic.
NEWS: @NVIDIA and @Intel to develop AI infrastructure and personal computing products.
Read the announcement: https://t.co/Gl28iWwSZc pic.twitter.com/srOhEnr0Ja
— NVIDIA Newsroom (@nvidianewsroom) September 18, 2025
Financially, the investment price gives Intel breathing room and a
signal to the market that the two of the most consequential compute franchises
can collaborate when it suits them … the other being AMD, who are going toe-to-toe
with both Intel and Nvidia.
The core takeaway remains product-first. This is a go-to-market and
engineering alignment, not a wholesale rewrite of Intel’s manufacturing
destiny.
Intel’s Real Headache
Here is the catch. Intel’s biggest structural problem is not whether it
can co-design a nice CPU for Nvidia or slip RTX chiplets into client silicon.
Its problem is whether Intel Foundry becomes a competitive, durable, external
business. Nvidia’s cash and collaboration do
not make the foundry issue disappear. The alliance does not automatically
fix process execution, cost, or the credibility deficit that comes with recent
slips. That is the mountain, and it remains tall.
How Wall Street Actually Reacted
Markets cheered. The Intel stock price jumped more than 20 percent on
the news, reflecting a classic relief rally as investors priced in fresh
capital, brand validation, and a clearer product story. The move came alongside
headlines that highlighted the $23.28 purchase price and the multi-generation
roadmap, which helped bulls sketch a near-term narrative that Intel will have
more than good intentions behind its AI pitch.
Nvidia and Intel announce jointly developed "Intel x86 RTX SoCs" for PCs with Nvidia graphics and custom Nvidia data center x86 processors.
Nvidia acquires $5 billion in Intel stock in a major deal.
Intel stock price +30% pic.twitter.com/wLGm86vLNT
— Pirat_Nation 🔴 (@Pirat_Nation) September 18, 2025
It is worth separating pop from proof. A big one-day gain is a
sentiment reset, not a solved thesis. The stock can re-rate on partnership
optics and incremental balance-sheet comfort, but the durable multiple lives or
dies on whether Intel executes on manufacturing, cost, and external customer
wins. Prices move fast. Process nodes do not.
What the Deal Does Not Do
Critically, this announcement is not Nvidia migrating its GPU
manufacturing to Intel’s fabs. Reporting on the tie-up underscores that there
are no immediate plans for Nvidia to rely on Intel’s foundry services.
Translation for the back row: Great for co-developed products. Not a
contract that backfills Intel’s fab utilization with Nvidia’s hottest wafers.
If your bull case required Nvidia to flip from its established foundry
relationships to Intel right now, this is not that movie.
A Near-Term Win and Long-Term Question
Near term, everyone gets something. Nvidia adds CPU muscle tuned to its
platforms and a PC story that feels more like a system than a parts bin. Intel
locks arms with the category leader in acceleration and tells investors that
the AI party is not happening without x86 at the door. Customers get a cleaner,
faster bridge across CPU and GPU, which is what most real workloads want. That
is the tidy version.
Long term, the uncomfortable part remains. Intel still has to prove
that its manufacturing roadmap is on time, cost-competitive, and attractive to
third parties who are not being coaxed with one-off prestige projects. This
collaboration does not erase the need for external customers that choose Intel
Foundry on merit. It does not snap Intel to parity with the world’s leading
process nodes. It does not guarantee that packaging and yield
Yield
A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a
A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a
Read this Term stories scale
gracefully. Those answers live in wafers and P&L, not in a press release.
The Bottom Line
As strategy, the move is elegant. Nvidia buys influence and CPU
alignment. Intel buys time and relevance. Intel’s faltering stock price goes
up. As operations, the hard work is elsewhere. Co-developed parts can ship on
schedule and still leave the foundry question unsolved. If Intel nails the
manufacturing turnaround, this partnership will look like the smart prequel to
a bigger comeback. If it does not, $5 billion will read like a great chapter
title that never became the book.
For more stories around the edges of finance and tech, visit our Trending section.
Nvidia is buying into Intel and building with it, but the partnership
leans on CPU and interconnect synergy, not a miracle cure for Intel’s
manufacturing woes. Still, the stock price is up.
What Nvidia is Actually Buying
Nvidia is investing $5 billion in Intel’s common stock, with the purchase
priced at $23.28 per share and subject to regulatory approvals. That is not
just a financial gesture, it sits alongside a product roadmap where the two
companies plan “multiple generations” of custom data center
Data Center
A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more
A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more
Read this Term and PC products.
The technical spine is clear. Intel will design and manufacture custom x86 CPUs
that Nvidia will integrate into its AI infrastructure platforms, and for PCs
Intel will build x86 system-on-chips that integrate Nvidia RTX GPU chiplets,
with NVLink used to connect the worlds. That is real product, not a handshake.
Join us live! The CEOs of Intel and @nvidia will host a webcast press conference today at 10 a.m. PT (1 p.m. ET) to talk about our new partnership.
Tune in here: https://t.co/z2SPmDtIjN https://t.co/3cTzXcuboq
— Intel (@intel) September 18, 2025
Nvidia’s line is that AI is remaking the stack, from silicon up. Jensen
Huang called it a “new industrial revolution,” and framed this tie-up as a way
to fuse Nvidia’s AI stack with Intel’s x86 ecosystem. Intel’s leadership
pitched Intel’s process, packaging, and platforms as a complement to Nvidia’s
acceleration lead. The upshot is simple. Nvidia gets custom CPUs aligned to its
platforms, Intel gets RTX in client silicon, and customers get a cleaner bridge
between CPU and GPU domains.
Why Is This Happening?
Follow the incentives. Nvidia wants CPU optionality that slots cleanly
into its AI infrastructure and a stronger PC story that pairs RTX with Intel’s
volume engine. Intel wants relevance in AI data centers and a differentiated
client roadmap that borrows Nvidia’s halo. Both want to tell big customers that
the bottleneck between x86 and accelerated compute is easing, thanks to NVLink
and co-design at the platform level. That is the logic.
NEWS: @NVIDIA and @Intel to develop AI infrastructure and personal computing products.
Read the announcement: https://t.co/Gl28iWwSZc pic.twitter.com/srOhEnr0Ja
— NVIDIA Newsroom (@nvidianewsroom) September 18, 2025
Financially, the investment price gives Intel breathing room and a
signal to the market that the two of the most consequential compute franchises
can collaborate when it suits them … the other being AMD, who are going toe-to-toe
with both Intel and Nvidia.
The core takeaway remains product-first. This is a go-to-market and
engineering alignment, not a wholesale rewrite of Intel’s manufacturing
destiny.
Intel’s Real Headache
Here is the catch. Intel’s biggest structural problem is not whether it
can co-design a nice CPU for Nvidia or slip RTX chiplets into client silicon.
Its problem is whether Intel Foundry becomes a competitive, durable, external
business. Nvidia’s cash and collaboration do
not make the foundry issue disappear. The alliance does not automatically
fix process execution, cost, or the credibility deficit that comes with recent
slips. That is the mountain, and it remains tall.
How Wall Street Actually Reacted
Markets cheered. The Intel stock price jumped more than 20 percent on
the news, reflecting a classic relief rally as investors priced in fresh
capital, brand validation, and a clearer product story. The move came alongside
headlines that highlighted the $23.28 purchase price and the multi-generation
roadmap, which helped bulls sketch a near-term narrative that Intel will have
more than good intentions behind its AI pitch.
Nvidia and Intel announce jointly developed "Intel x86 RTX SoCs" for PCs with Nvidia graphics and custom Nvidia data center x86 processors.
Nvidia acquires $5 billion in Intel stock in a major deal.
Intel stock price +30% pic.twitter.com/wLGm86vLNT
— Pirat_Nation 🔴 (@Pirat_Nation) September 18, 2025
It is worth separating pop from proof. A big one-day gain is a
sentiment reset, not a solved thesis. The stock can re-rate on partnership
optics and incremental balance-sheet comfort, but the durable multiple lives or
dies on whether Intel executes on manufacturing, cost, and external customer
wins. Prices move fast. Process nodes do not.
What the Deal Does Not Do
Critically, this announcement is not Nvidia migrating its GPU
manufacturing to Intel’s fabs. Reporting on the tie-up underscores that there
are no immediate plans for Nvidia to rely on Intel’s foundry services.
Translation for the back row: Great for co-developed products. Not a
contract that backfills Intel’s fab utilization with Nvidia’s hottest wafers.
If your bull case required Nvidia to flip from its established foundry
relationships to Intel right now, this is not that movie.
A Near-Term Win and Long-Term Question
Near term, everyone gets something. Nvidia adds CPU muscle tuned to its
platforms and a PC story that feels more like a system than a parts bin. Intel
locks arms with the category leader in acceleration and tells investors that
the AI party is not happening without x86 at the door. Customers get a cleaner,
faster bridge across CPU and GPU, which is what most real workloads want. That
is the tidy version.
Long term, the uncomfortable part remains. Intel still has to prove
that its manufacturing roadmap is on time, cost-competitive, and attractive to
third parties who are not being coaxed with one-off prestige projects. This
collaboration does not erase the need for external customers that choose Intel
Foundry on merit. It does not snap Intel to parity with the world’s leading
process nodes. It does not guarantee that packaging and yield
Yield
A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a
A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a
Read this Term stories scale
gracefully. Those answers live in wafers and P&L, not in a press release.
The Bottom Line
As strategy, the move is elegant. Nvidia buys influence and CPU
alignment. Intel buys time and relevance. Intel’s faltering stock price goes
up. As operations, the hard work is elsewhere. Co-developed parts can ship on
schedule and still leave the foundry question unsolved. If Intel nails the
manufacturing turnaround, this partnership will look like the smart prequel to
a bigger comeback. If it does not, $5 billion will read like a great chapter
title that never became the book.
For more stories around the edges of finance and tech, visit our Trending section.
