Nvidia, Intel Shares Jump After US Antitrust Agencies Clear $5B Deal That Deepens Their Chip Partnership

• The Federal Trade Commission announced the clearance of the transaction on a notice on its website on Friday.
• The two companies said in September that they intend to co-develop chips for data centers and personal computers as part of the deal. 
• Patrick Moorhead, founder and CEO of Moor Insights had termed it a “huge deal.”

Shares of Intel (INTC) and Nvidia (NVDA) rose over 3% on Friday after the U.S. Federal Trade Commission cleared the latter’s $5 billion investment in Intel.

The Federal Trade Commission announced the clearance of the transaction on a notice on its website on Friday. Nvidia announced plans to invest $5 billion in ailing Intel in September at a purchase price of $23.28 per share, sending INTL shares soaring 22.8%, and joining the Trump administration in supporting Intel’s turnaround.  

$5B Investment Announcement

The two companies said in September that they intend to co-develop chips for data centers and personal computers as part of the deal.

Intel will build x86 central processing units for Nvidia’s AI infrastructure platforms, the two companies then said. For personal computing, Intel will build x86 system-on-chips integrating Nvidia’s RTX graphics processing units which will power a wide range of PCs, they added.

“This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the…