By O'Ryan Johnson
Publication Date: 2025-12-29 22:20:00
Nvidia’s $5 billion Intel stock purchase is already worth $7.58 billion, turning the recently approved bailout of its rival into a shrewd financial play.
Nvidia had locked in a purchase price of $23.28 per share for Intel when Nvidia CEO Jensen Huang and Intel CEO Lip-Bu Tan struck a deal in September.
The deal had been under scrutiny by the U.S. Federal Trade Commission, which was examining whether Nvidia’s potential 4 percent ownership stake could run afoul of antitrust laws.
However, the FTC gave the deal a greenlight on Dec. 18.
The purchase of 214 million shares closed on Dec. 26, according to Intel regulatory filings. Intel shares closed Monday at $36.68.
Under the terms of the deal, Nvidia and Intel will jointly develop “multiple generations” of chips for datacenter and PC in a move to capture share across the entire chip customer base from consumer to hyperscale customers.
The two companies will work on connecting their chips via the incredibly fast NVLink, which reaches 1.8 TB/s of bandwidth (900 GB/s in each direction) per GPU – about…
