NVIDIA and Intel announced a strategic collaboration on September 18, 2025, with NVIDIA investing $5 billion in Intel common stock at $23.28 per share. According to NVIDIA, the partnership will develop multiple generations of custom data center and PC products. The companies will focus on connecting NVIDIA and Intel architectures using NVIDIA NVLink technology. Intel will build NVIDIA-custom x86 CPUs for AI infrastructure platforms. For personal computing, Intel will create x86 system-on-chips integrating NVIDIA RTX GPU chiplets.

NVIDIA founder and CEO Jensen Huang called this a "historic collaboration" that couples NVIDIA's AI stack with Intel's x86 ecosystem. Intel CEO Lip-Bu Tan said their manufacturing capabilities will complement NVIDIA's AI leadership to enable new industry breakthroughs. The investment makes NVIDIA one of Intel's largest shareholders with approximately 4% ownership.

Financial Rescue For Struggling Chipmaker

The partnership provides crucial support for Intel during a challenging period. CNBC reports Intel lost nearly $19 billion last year and another $3.7 billion in the first six months of 2025. The company expects to reduce its workforce by 25% by the end of 2025. Intel shares surged more than 25% following the announcement, while NVIDIA shares rose nearly 3%.

The timing coincides with increased government involvement in Intel's operations. The U.S. government secured a 10% stake in Intel last month, making it one of the company's biggest shareholders. This federal investment came after Intel received $8.9 billion in grants and loans from the CHIPS Act in exchange for equity stakes. NVIDIA CEO Jensen Huang confirmed the Trump administration had no involvement in this partnership decision.

Competitive Landscape Shifts

The alliance reshapes competitive dynamics across the semiconductor industry. Investing.com reports Taiwan Semiconductor Manufacturing fell 2.9% as investors worried about reduced manufacturing dominance. Advanced Micro Devices and ARM Holdings each declined 5% amid concerns about changing industry relationships.

Currently, NVIDIA relies heavily on TSMC for chip manufacturing, giving the Taiwanese company significant leverage in the AI chip supply chain. The Intel partnership could potentially redirect some production to Intel's facilities, though Huang stated the current focus remains on custom CPUs rather than foundry services. BNN Bloomberg suggests the collaboration could eventually threaten TSMC's position if Intel successfully revives its manufacturing capabilities.

AMD faces immediate pressure as NVIDIA effectively recruits Intel to compete against them in data center markets. The partnership positions Intel to regain market share in AI infrastructure, potentially reducing AMD's opportunities in server CPU orders from TSMC.

Further Reading

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