Nvidia invests $5 billion in Intel, greatly affecting the US chip race

On September 18, Nvidia announced a $5 billion investment in Intel, just weeks after the Trump administration made the US government the largest shareholder of the chipmaker.

CEO of Nvidia Corporation, Jensen Huang - Photo: AFP

According to the New York Times , on September 18, the leader of Nvidia Corporation (USA) said that it will buy 5 billion USD shares of its struggling competitor - Intel, the only advanced chip manufacturer in the US - to help Intel strengthen its position in a key industry for both the economy and defense.

The stake would make Nvidia one of Intel's largest shareholders, holding about 4% of the shares after the new issuance.

Nvidia's investment problem

Observers say the deal will help Nvidia score points with the White House in its efforts to loosen controls on chip exports to China.

The capital injection comes just weeks after US President Donald Trump orchestrated a controversial deal that made the US government Intel's largest shareholder, paying $8.5 billion for about a 10% stake.

According to the New York Times , this is a rare level of White House intervention in private businesses, usually only happening in times of war or crisis.

At a press conference on September 18, Nvidia CEO Jensen Huang affirmed that the Trump administration was not involved in this deal, but admitted that US Secretary of Commerce Howard Lutnick was "very excited and supportive to see US technology companies working together."

Analysts say Nvidia's move is not only an investment but also aimed at lobbying the US government to change its export policy.

David Sacks, the White House's "AI envoy," called for easing restrictions on US chip exports, arguing that China "doesn't need US chips that much" and that the country's Huawei Group is closing the gap with Nvidia.

If lifted, the policy could bring Nvidia billions of dollars a year, while strengthening America's position in the AI ​​race with China.

According to Ryan Fedasiuk, an expert at the American Enterprise Institute, the $5 billion deal will help Nvidia “score points” with the Trump administration. He said this is a large investment for the corporation’s image, but of course it would be beneficial to invest in a company in which the US government holds shares.

Experts say this is Intel's "golden time"

Intel receives a "double" boost from the Trump administration and Nvidia - Photo: REUTERS

According to Reuters, on September 18, Intel shares increased by nearly 23% to $30.57, far exceeding the $20.47 that the US government bought. Nvidia plans to buy at $23.28/share and is awaiting regulatory approval. Meanwhile, Nvidia shares also increased by 3.5%, reaching $176.24.

Intel CEO Lip-Bu Tan called the deal with Nvidia a “turning point” for the company. The combination of the U.S. government investment and Nvidia has made “recent weeks a golden time” for Intel, after years of losses and investor disappointment, according to Dan Ives, an analyst at Wedbush Securities.

Intel - once the world's leading chip maker for two decades - has declined in recent years due to many strategic mistakes and just reported a loss of 2.9 billion USD in the most recent quarter, despite efforts by management to cut costs.

While Intel struggles to regain its position, Nvidia has risen to become the world's most valuable company with a capitalization of 4.1 trillion USD thanks to AI chips - the engine of the global artificial intelligence fever.

Both Nvidia and Intel are headquartered in Santa Clara, California, and both announced that they will jointly develop products for data centers and PCs.

However, Nvidia - which is a "fabless" design company (only designs, no chip factories) - has not committed to using Intel's manufacturing services.

Bernstein analyst Stacy Rasgon said the cash investment is probably the most support Nvidia can give Intel right now, as Intel's manufacturing capabilities remain unclear.

However, analysts say this alliance, along with the support of the US government, will help Intel "revive" after many difficult years, and at the same time bring the company back to the center position in the global AI race with China.

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Source: https://tuoitre.vn/nvidia-dau-tu-5-ti-usd-vao-intel-tac-dong-lon-den-cuoc-dua-chip-cua-my-20250919164729422.htm