On Thursday, Intel Corporation (NASDAQ:INTC) shares jumped by double digits after announcing a major partnership with Nvidia Corporation (NASDAQ:NVDA).
Intel Stock Rockets On Breakthrough Deal With Nvidia
Intel shares jumped 22.77% to close at $30.57 after unveiling a partnership with Nvidia to co-develop custom chips and next-generation systems.
The stock slipped slightly in after-hours trading, while Nvidia rose 3.49% during the session and added modest gains after hours, according to Benzinga Pro.
The announcement marked Intel's sharpest rally of the year, lifting its year-to-date gains to more than 52%.
Lip-Bu Tan Praises Collaboration With Jensen Huang
Intel CEO Lip-Bu Tan described the partnership as both personal and strategic.
"Excited to team up with my good friend Jensen to jointly develop multiple generations of custom data center and PC products," Tan said on X, formerly Twitter.
"Our collaboration brings together the best of Intel and Nvidia to benefit customers – and shows how vital x86 architecture and NVLink will be in shaping the future of AI infrastructure and personal computing."
See Also : Intel Growth Challenges Are Not Over Despite Altera Stake Sale: Analyst
In the announcement press release, Tan highlighted Intel's decades of leadership in x86 architecture. He stated that together with its manufacturing scale and advanced packaging capabilities, Intel's architecture will serve as a strong complement to Nvidia's dominance in accelerated computing.
Jensen Huang Calls AI A New Industrial Revolution
Nvidia co-founder and CEO Huang framed the alliance as transformative for the entire industry.
"AI is powering a new industrial revolution and reinventing every layer of the computing stack -- from silicon to systems to software," Huang said in the press release.
He said that tying Nvidia's CUDA platform and accelerated computing stack with Intel's CPU ecosystem would "lay the foundation for the next era of computing."
Details Of The Nvidia-Intel Partnership And Investment
Under the agreement, Intel will design custom x86 CPUs optimized for Nvidia's AI infrastructure platforms and build a system-on-chip for PCs that integrates Nvidia RTX GPU chiplets.
Nvidia's NVLink technology will serve as the bridge connecting the two platforms.
As part of the deal, Nvidia will invest $5 billion in Intel stock at $23.28 per share, pending regulatory approval.
Government Backing And Intel's Restructuring Push
The partnership arrives as Washington boosts Intel's turnaround. The U.S. government has already secured a 10% stake in Intel through the CHIPS Act, with rights to purchase another 5% if needed.
As part of sweeping reforms under Tan, Intel has sold a majority stake in Altera to Silver Lake for $3.3 billion, announced plans to reduce its workforce to 75,000 and established a separate foundry board.
Benzinga's Edge Stock Rankings indicate that Intel is maintaining an upward trajectory across short, medium and long-term horizons, with additional performance insights available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
