U.S. regulators have officially cleared Nvidia’s (NVDA) planned $5 billion investment in Intel (INTC), removing a major hurdle for one of the major partnerships in the semiconductor industry. The Federal Trade Commission (FTC) posted the approval notice, confirming that the deal can move forward. Following the news, both NVDA and INTC stocks jumped over 3.3% on Friday.
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Despite concerns over potential monopolistic influence, FTC’s approval signals that regulators do not currently view this minority stake as a violation of antitrust laws.
Nvidia’s Investment to Give Intel a Boost
The deal, originally announced in September 2025, involved Nvidia purchasing Intel common stock at $23.28 per share, providing a major “lifeline” to the struggling chipmaker.
Beyond the capital infusion, the two companies formed a multi-generational partnership to co-develop custom data center and personal computing products. The collaboration involves combining Intel CPUs with Nvidia GPU chiplets.
For Intel, Nvidia’s investment provides meaningful support as it works to regain manufacturing leadership. The company has been aggressively expanding its foundry business, aiming to produce chips not only for itself but for external customers as well.
For Nvidia, the deal provides greater manufacturing flexibility at a time when demand for AI chips continues to surge.
Is NVDA a Strong Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 40 Buys, one Hold, and one Sell assigned in the past three months. Further, the average Nvidia price target of $260 per share implies 44.30% upside potential.
Is INTC Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on five Buys, 22 Holds, and six Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average Intel price target of $37.40 per share implies 0.16% downside risk.
