Intel jumps 30% after Nvidia says to invest $5B in chipmaker

Intel (INTC) jumped nearly 30% in premarket trading after Nvidia (NVDA) said it will invest $5B in the chipmaker as part of a deal to co0develop multiple generations of custom data center and PC products that accelerate applications and workloads across hyperscale, enterprise and consumer markets. Nvidia is investing its stake at a price of $23.28 a share, according to a press release. The statement says the companies will focus on “seamlessly connecting NVIDIA and Intel architectures using NVIDIA NVLink – integrating the strengths of NVIDIA’s AI and accelerated computing with Intel’s leading CPU technologies and x86 ecosystem to deliver cutting-edge solutions for customers.” For data centers, Intel will build Nvidia-custom x86 CPUs that Nvidia will integrate into its AI infrastructure platforms and offer to the market, while for personal computing, Intel will build and offer to the market x86 system-on-chips that integrate Nvidia RTX GPU chiplets. “AI is powering a new industrial revolution and reinventing every layer of the computing stack – from silicon to systems to software. At the heart of this reinvention is NVIDIA’s CUDA architecture,” said Nvidia founder and CEO Jensen Huang. “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. Together, we will expand our ecosystems and lay the foundation for the next era of computing.” The deal comes a month after the U.S. government agreed to take a 10% stake in Intel. Shares of AMD (AMD) are down 5% in premarket trading.