Nvidia’s $5 Billion Intel Stock Investment Turns into a $7.58 Billion Asset
January 6, 2026
Nvidia's recent $5 billion purchase of Intel stock has already proven to be a lucrative investment, now valued at approximately $7.58 billion. This strategic move followed Nvidia's acquisition of 214 million Intel shares at a price of $23.28 per share, ahead of Intel's current stock price of $36.68.
The Deal and Regulatory Approval
The transaction, finalized on December 26, was initially scrutinized by the U.S. Federal Trade Commission (FTC), which examined whether Nvidia’s potential 4% stake could breach antitrust laws. After review, the FTC approved the deal on December 18.
Strategic Collaboration Between Nvidia and Intel
Under the agreement, Nvidia and Intel plan to develop multiple generations of chips for data centers and personal computers, aiming to expand their market share across the entire spectrum—from consumer devices to hyperscale data centers. The collaboration emphasizes connecting their chips through NVLink, a high-speed interconnect reaching up to 1.8 TB/s bandwidth per GPU, vastly outpacing PCIe 5.0 x16 slots.
Innovations in PC and Data Center Technologies
The partnership includes Intel manufacturing Nvidia-custom x86 CPUs, which Nvidia will incorporate into AI infrastructure platforms. Additionally, Intel will produce x86 system-on-chips (SOCs) integrating Nvidia RTX GPU chiplets, paving the way for PCs with combined CPU and GPU capabilities.
Historical Context and Regulatory Challenges
This alliance resembles Nvidia’s 2021 effort to acquire Arm Holdings for $40 billion, a deal that was blocked after FTC opposition. FTC Chair Lina Khan warned that such mergers could reduce competition by allowing dominant firms to control rival technologies and stifle innovation—an outcome the FTC actively seeks to prevent.
Nvidia’s Broader Strategic Moves
Beyond its investment in Intel, Nvidia continues to invest heavily in AI and GPU technology. It has allocated $2 billion into Synopsys, a move designed to make GPUs more essential for design and simulation. Moreover, Nvidia is expanding its influence through collaborations with companies like Qualcomm and Fujitsu, further integrating its NVLink technology across various platforms.
Conclusion
Nvidia’s astute investment in Intel stock not only demonstrates its financial foresight but also underlines a broader strategic push to lead in chip development for data centers and personal computing. As regulatory landscapes evolve, Nvidia remains poised to shape the future of semiconductor innovation.
