Nvidia Completes $5 Billion Intel Share Purchase Under September Deal
GeokHub
Contributing Writer
NEW YORK | Dec 29 (GeokHub) Nvidia has completed the purchase of $5 billion worth of Intel shares, finalising a transaction announced in September that has been widely viewed as a critical financial boost for the struggling U.S. chipmaker.
In a regulatory filing on Monday, Intel said Nvidia acquired more than 214.7 million shares of its common stock at $23.28 per share through a private placement, in line with the terms agreed earlier this year.
The deal marked an unusual move by Nvidia — the world’s most valuable company and the dominant supplier of artificial intelligence chips — to take a significant equity stake in a longtime rival that has faced years of strategic missteps and heavy financial strain.
A LIFELINE FOR INTEL
Intel has been under pressure after costly investments in new manufacturing capacity and repeated delays in executing its turnaround strategy eroded cash flow and weighed on its balance sheet. The Nvidia investment has been seen by analysts as a major vote of confidence, providing both capital and symbolic support at a critical moment for the company.
REGULATORY CLEARANCE
U.S. antitrust authorities approved Nvidia’s investment earlier this month. The Federal Trade Commission posted notice of its clearance in December, removing a key regulatory hurdle for the transaction.
MARKET RESPONSE
Nvidia shares slipped 1.3% in premarket trading, while Intel’s stock was little changed following confirmation of the completed deal.
The transaction underscores the shifting dynamics of the global semiconductor industry, where strategic alliances and capital injections have become increasingly important amid soaring AI demand and intensifying competition.
