"In a seismic move shaking up the semiconductor world, Nvidia ( NASDAQ:NVDA ) announced yesterday it was pouring $5 billion into its longtime rival Intel ( NASDAQ:INTC ). Nvidia is acquiring a stake in Intel at $23.28 per share while partnering on new PC and data center chips. This isn't just a financial lifeline for Intel's beleaguered foundry business - it's a bold bet to reshape the AI chip landscape and bolster U.S. semiconductor dominance in a geopolitically fraught world."
"Intel has been hemorrhaging market share to Taiwan Semiconductor Manufacturing ( ), the global foundry leader, due to delays in its advanced process nodes and ballooning costs. By injecting $5 billion, Nvidia could secure priority access to Intel's U.S.-based fabs, diversifying its supply chain away from Asia and hedging against geopolitical tensions like U.S.-China trade wars. The Timing Couldn't Be More Critical The timing of this deal is no accident."
Nvidia is investing $5 billion to buy a stake in Intel at $23.28 per share and will partner on new PC and data-center chips. The deal aims to strengthen Intel's foundry business and help it catch up with Taiwan Semiconductor Manufacturing amid delays and rising costs. Nvidia expects priority access to Intel's U.S. fabs to diversify supply chains away from Asia and to hedge geopolitical risks such as U.S.-China trade tensions. Intel's foundry plans, supported by over $2 billion in CHIPS Act funding, target advanced process nodes by late 2025. Nvidia says the partnership will accelerate innovation for the global AI ecosystem.
Read at 24/7 Wall St.
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