Nvidia Completes $5bn Intel Share Purchase, Offering Key Lifeline to Struggling Chipmaker

Nvidia has completed a $5 billion investment in Intel, finalizing a closely watched transaction that underscores both Intel’s financial strain after years of strategic missteps and Nvidia’s growing influence across the global semiconductor ecosystem.

In a filing on Monday, Intel confirmed that Nvidia purchased more than 214.7 million Intel common shares at a price of $23.28 per share, in line with the terms announced in September. The shares were acquired through a private placement, giving Nvidia a significant minority stake in the U.S. chipmaker at a time when Intel is undergoing one of the most difficult transitions in its history.

The deal had already received regulatory clearance, with U.S. antitrust agencies signing off earlier in December. A notice posted by the Federal Trade Commission indicated that the investment did not raise immediate competition concerns, despite Nvidia’s dominant position in artificial intelligence chips and Intel’s central role in both chip design and manufacturing.

The transaction is widely viewed as a crucial financial lifeline for Intel. The company has spent the past several years grappling with lost technological leadership, delays in advanced manufacturing processes, and fierce competition from rivals such as AMD and TSMC. At the same time, Intel has embarked on an ambitious and costly strategy to rebuild its manufacturing base, committing tens of billions of dollars to new fabrication plants in the United States and Europe as it seeks to become a major contract chipmaker for external customers.

Those capital-intensive expansions have weighed heavily on Intel’s balance sheet, draining cash flow and putting pressure on margins. The Nvidia investment provides a significant infusion of capital that can help support Intel’s turnaround plans, shore up investor confidence, and complement government subsidies Intel has secured under U.S. and European semiconductor industrial policies.

Nvidia, by contrast, is entering the deal from a position of exceptional strength. The company has surged to become the world’s most valuable firm, fueled by explosive demand for its AI accelerators, which are now the backbone of data centers powering large language models and other AI systems. While Nvidia does not manufacture chips itself and relies heavily on Taiwan Semiconductor Manufacturing Company, its investment in Intel signals a strategic interest in reinforcing the broader U.S. semiconductor supply chain.

Although neither company has described the transaction as a strategic partnership, the deal deepens financial ties between the two firms that have traditionally competed in data center processors and other segments. Analysts say Nvidia’s move may also be interpreted as a vote of confidence in Intel’s long-term manufacturing ambitions, particularly as geopolitical tensions and U.S. policy increasingly prioritize domestic chip production.

Market reaction to the completion of the deal was subdued. Nvidia shares slipped about 1.3% in premarket trading, while Intel stock was little changed, suggesting investors had largely priced in the transaction since its announcement in September.

The investment comes at a time when the semiconductor industry is being reshaped by artificial intelligence, geopolitical rivalries, and government intervention. Washington has made semiconductor self-sufficiency a strategic priority, encouraging private capital to complement public funding. Intel sits at the center of that effort, but execution risks remain high.

However, by finalizing the $5 billion share purchase, Nvidia has reinforced Intel’s near-term financial position while positioning itself closer to the policy and industrial currents reshaping the chip sector. Another highlight of the deal is that in today’s semiconductor landscape, fierce competitors can also become strategic partners as the industry adapts to unprecedented technological and political change.