Intel shares jump 25%! Stock rallies after Nvidia invests $5 billion; companies to collaborate on AI and PC chips

Intel shares soared more than 25 percent to $31.25 on Thursday following Nvidia’s announcement that it will invest $5 billion in the struggling semiconductor giant, giving a much-needed boost to the Silicon Valley veteran.The deal will see Intel and Nvidia collaborate on custom data centres for artificial intelligence infrastructure and integrate Nvidia technology into personal computer products. Nvidia will acquire Intel common stock at $23.28 a share, subject to regulatory approvals, AP reported.“This historic collaboration tightly couples Nvidia’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms,” Nvidia CEO Jensen Huang said.

“Together, we will expand our ecosystems and lay the foundation for the next era of computing.”Under the partnership, Intel will produce custom chips for Nvidia’s AI infrastructure platforms, while for PCs, Intel chips will integrate Nvidia technology, effectively “seamlessly connecting” the two architectures.Intel, a pioneer in the personal computing revolution, has faced significant setbacks over the past decade. The company reported losses of nearly $19 billion last year and another $3.7 billion in the first half of 2025, and it plans to cut a quarter of its workforce by year-end. Meanwhile, Nvidia has surged as demand for its graphics processing units (GPUs) has skyrocketed amid the artificial intelligence boom.