What Happened?
Shares of computer processor maker Intel (NASDAQ: INTC) jumped 3% in the afternoon session after the company confirmed that rival chipmaker Nvidia completed a previously announced $5 billion investment.
The deal, which was finalized through a regulatory filing, involved Nvidia purchasing approximately 214.8 million Intel shares at $23.28 each. This purchase gave Nvidia a stake of about 4.4% in the company. The investment provided crucial funding for Intel's turnaround efforts. The agreement also included a technology partnership, with both companies planning to co-develop advanced chips for data centers and personal computers. This collaboration aimed to combine Intel's custom processors with Nvidia's artificial intelligence (AI) chips to create faster and more efficient systems.
After the initial pop the shares cooled down to $37.69, up 2.8% from previous close.
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What Is The Market Telling Us
Intel’s shares are extremely volatile and have had 37 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock gained 3.2% on the news that investor optimism around artificial intelligence fueled broad market gains.
Technology stocks with a focus on artificial intelligence once again led the market higher, boosting the Nasdaq and S&P 500. Companies at the forefront of the AI boom, such as Nvidia and Broadcom, saw significant jumps in their share prices. The rally reflects a renewed belief among investors in the transformative potential of AI technology to drive future growth and productivity. The rally was further supported by a surprise cooling in the November consumer price index (CPI) report, which triggered market pricing for additional rate cuts in the coming year. This created a more favorable environment for growth-oriented companies.
Intel is up 86.4% since the beginning of the year, but at $37.69 per share, it is still trading 13.9% below its 52-week high of $43.76 from December 2025. Investors who bought $1,000 worth of Intel’s shares 5 years ago would now be looking at an investment worth $773.03.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.
