NVDA: Nvidia Takes 4% Stake in Intel With $5 Billion Buyout

This article first appeared on GuruFocus.

Nvidia Corporation (NASDAQ:NVDA) completed its $5 billion purchase of Intel Corporation (NASDAQ:INTC) shares. The transaction, first announced in September, has now fully closed.

The deal involved Nvidia paying $23.28 per share for roughly 214.7 million newly issued Intel shares. As a result, Nvidia now owns about 4% of Intel. The shares were issued via private placement, allowing Intel to raise cash directly without tapping public markets.

Intel gains fresh funding to support its chip manufacturing and AI development, easing years of heavy factory spending that had constrained cash flow. The partnership also strengthens collaboration between the two companies in CPU-GPU integration for data centers and personal computers.

Early previews suggest Intel may produce a Serpent Lake laptop chip combining its CPUs with Nvidia GPUs. Analysts see the deal as expanding Nvidia’s influence beyond Taiwanese suppliers while giving Intel more flexibility in AI chip deployment.