Nvidia Acquires Strategic Stake in Intel, Forging Unlikely Chip Alliance

In a significant strategic move, Nvidia has become a major shareholder in Intel. A regulatory filing dated December 29th reveals that the AI chip leader purchased approximately 214.8 million newly issued Intel shares at a price of $23.28 each. The transaction, finalized on December 26th, grants Nvidia an equity position of about 4.4% in the semiconductor pioneer. This infusion provides Intel with much-needed capital, while the two firms have agreed to deepen their technical collaboration, despite being direct competitors in several other market segments.

The share price reflects a discount that was negotiated and agreed upon back in September 2025. For Intel, this capital raise is a crucial breath of fresh air. The company's CEO, Lip-Bu Tan, who took the helm in March 2025, is credited with stabilizing Intel's manufacturing roadmap and orchestrating strategic partnerships such as this one. The technical alliance aims to integrate Nvidia's high-speed interconnect technology with Intel's upcoming data center CPUs, representing a concerted effort to combine their respective strengths within the competitive AI infrastructure market.

Intel's stock price showed initial strength on the news but ultimately closed the final trading session of the year down 1.07%. Profit-taking activity at year-end likely contributed to this pullback. Despite the daily decline, Intel shares recorded an impressive annual gain of roughly 86% for 2025, marking a notable reversal from the lows seen at the start of the year.

Should investors sell immediately? Or is it worth buying Intel?

This recovery is attributed in part to stabilized production and strategic deals, including the one with Nvidia. However, questions regarding long-term competitiveness persist. The "Ohio One" manufacturing project, originally slated for an earlier launch, was postponed in March 2025 to a window between 2030 and 2031. This delay casts some doubt on Intel's ambitions to challenge TSMC's dominance in the latter half of the decade.

Analyst Sentiment and Forward Look

Market analysts maintain a cautious stance, with a majority holding a "Hold" rating on the equity. Investor focus now shifts to the upcoming Q4 earnings report and the company's guidance concerning its 18A process node. Key technical levels are being watched: a sustained breakout above $38 could signal the next leg higher, while a decline below $36 may indicate further consolidation is needed. While the Nvidia partnership provides near-term momentum, the success of Intel's long-term transformation remains an open question.