Intel surges 24% as Nvidia to invest $5 billion in chipmaker– www.cnbc.com
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Nvidia said it will invest $5 billion in Intel as part of a deal to co-develop data center and PC chips with the troubled chipmaker, which took on the U.S. government as an investor last month.
Nvidia is investing its stake at a price of $23.28 a share, a release from the company said. Intel shares jumped 24% to around $31 a share following news of the deal.
“This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms. Together, we will expand our ecosystems and lay the foundation for the next era of computing,” said Nvidia CEO Jensen Huang in a release.
Nvidia now joins Softbank and the U.S. government in supporting Intel’s turnaround.
Intel shares, which hit their lowest in more than a decade earlier this year, rebounded after finding renewed support from the Trump administration, striking a deal for the U.S. government to invest 10% in the chipmaker in August.
Softbank also made a $2 billion investment with Intel in August.