Nvidia has officially completed its previously announced investment in Intel, purchasing shares worth $5 billion, according to a regulatory filing released Monday. The transaction follows a deal unveiled in September and marks one of the most significant investments between two major U.S. semiconductor companies.
The investment comes at a critical time for Intel, which has been working to stabilize its finances after years of strategic missteps and heavy spending on manufacturing capacity.
Details of the Nvidia–Intel Share Deal
Under the September agreement, Nvidia agreed to pay $23.28 per share for Intel common stock. Monday’s filing confirms that Nvidia acquired more than 214.7 million Intel shares through a private placement at the agreed price.
The deal positions Nvidia, the world’s most valuable chip company and a dominant force in AI processors, as a major shareholder in Intel.
A Financial Boost for Intel
The transaction is widely viewed as a financial lifeline for Intel, which has faced mounting pressure from declining market share and capital-intensive investments in chip production facilities. The $5 billion infusion is expected to strengthen Intel’s balance sheet as it continues its turnaround efforts.
Industry analysts see the deal as a strategic vote of confidence in Intel’s long-term manufacturing and technology roadmap.
Regulatory Approval Clears the Way
U.S. antitrust authorities have already approved Nvidia’s investment. The U.S. Federal Trade Commission posted a notice earlier in December confirming that regulators had cleared the transaction, removing a key obstacle to completion.
Market Reaction
Following the filing, Nvidia shares slipped 1.3% in premarket trading, while Intel’s stock remained largely unchanged, signaling a muted immediate reaction from investors.
What This Means for the Semiconductor Industry
The investment highlights the shifting dynamics of the global semiconductor sector, where partnerships and capital support are becoming increasingly important amid rising costs and geopolitical pressures. While Nvidia and Intel remain competitors in certain areas, the deal underscores growing interdependence within the industry.
