Nvidia Buys $5bn Stake in Intel
US-based leading artificial intelligence chipmaker Nvidia has acquired shares worth $5 billion in Intel Corporation, the latter disclosed in a filing to the US securities regulator on Monday. The move marks the execution of an investment agreement announced last September, Reuters reported.
Under the deal, Nvidia purchased Intel’s common shares at $23.28 per share, acquiring more than 214.7 million shares through a private placement. The investment is being viewed as a significant financial boost for Intel, which has been under pressure due to long-standing strategic missteps and heavy capital expenditure aimed at expanding its manufacturing capacity.
Earlier this month, according to a notice from the US Federal Trade Commission, the investment received clearance from the country’s antitrust authorities, indicating no competition-law hurdles to the transaction.
Market reaction was mixed, with Nvidia shares slipping around 1.3 percent in pre-market trading, while Intel’s stock remained largely unchanged. Analysts believe the investment could deepen strategic ties between the two companies in the future and add a new dimension to the balance of power within the US semiconductor industry.
DBTech/BMT/OR
