Nvidia invests $5 billion in Intel shares to strengthen the US position in technology
Nvidia announced plans to invest $5 billion in Intel shares, becoming one of the key shareholders of the company, which recently received government support after the US government bought about 10% of its stake. This is reported by CNN.
As noted in a joint press release, Nvidia will pay $23.28 per share. After issuing the new shares, the company is expected to own approximately 4% or more of Intel. This investment became part of the US administration’s course to strengthen semiconductor production in the country and consolidate America’s position as a leader in the global chip industry.
Last month, US President Donald Trump jointly announced an $8.9 billion public investment in the company’s common stock with Intel, calling it “A great American company with an even more incredible future.
Despite the fact that Intel was once one of the main technological giants of the United States, in recent years the company has fallen behind its competitors, not keeping up with several technological milestones. New chief Lip-Bu Tan, who took over the corporation in March, is trying to return it to its leading position. Also, Nvidia and Intel announced joint development of adapted products for data centers and personal computers.
Analysts Wedbush Securities called the deal a “game changer” for Intel, because the company is entering the center of the fight for artificial intelligence:
“This deal is a game-changer for Intel, as they now move to the forefront of the AI game. Today’s announcement further underscores the US lead in the AI race against China, as Intel now moves from laggard to catalyst.”
Following the announcement, Nvidia (NVDA) shares rose before the market opened, but some gains were corrected during the day. Such steps confirm the strengthening of the role of the United States in the production of semiconductors and demonstrate the strategy of government support for this field at the global level, where key players are looking for new opportunities to develop and maintain competitiveness.
