NVIDIA Corporation's (NVDA.US) $5 billion investment in Intel Corporation (INTC.US) deal has been finalized, deepening AI chip collaboration.

NVIDIA Corporation (NVDA.US) completed a highly anticipated transaction on Monday, acquiring shares of Intel Corporation for approximately $5 billion in total, at a price of $23.28 per share, a discount of about 36% from Intel Corporation's closing price on Friday. The transaction had received approval from the Federal Trade Commission (FTC) earlier this month. Since the announcement, Intel Corporation's stock price has risen by approximately 45%. As of Monday's closing, Intel Corporation was up by 1.33%, while NVIDIA Corporation was down by 1.21%. According to arrangements disclosed by both parties, Intel Corporation's CPU chips will be integrated into NVIDIA Corporation's AI server system, paired with NVIDIA Corporation's leading AI accelerators, similar to NVIDIA Corporation's current Grace CPU and the upcoming Vera CPU set to be launched later this year. In addition, both parties announced that NVIDIA Corporation's graphics processing technology will be integrated into Intel Corporation's PC chips. For a long time, Intel Corporation has faced criticism for its embedded graphics performance. The market believes that incorporating NVIDIA Corporation's graphics technology could significantly enhance the competitiveness of Intel Corporation's PC chips. This investment is also seen as a crucial "lifeblood" for Intel Corporation. In recent years, Intel Corporation has lagged behind in the data center and advanced process sectors, watching competitors such as NVIDIA Corporation and Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) quickly pull ahead. Data shows that Intel Corporation's share in the data center equipment market has dropped from around 70% in 2021 to just 7% in the most recent quarter. Analysts point out that this investment not only provides much-needed financial support for Intel Corporation but also strategically positions it for deeper collaboration with core AI ecosystem vendors. However, the two parties have not provided any clarification on a key issue: whether NVIDIA Corporation will use Intel Corporation's struggling wafer fabrication business to produce its chips. Currently, NVIDIA Corporation's chips are mainly manufactured by Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR. NVIDIA Corporation has declined to comment on the progress of this project, and Intel Corporation has not responded to media requests for commentary. Investors generally see this move as a "vote of confidence" from NVIDIA Corporation towards Intel Corporation. So far this year, Intel Corporation has received funding from various sources, including investments from the U.S. Department of Commerce and a new round of capital injection from SoftBank.