Advertisement|Remove ads.
Intel Corp. (INTC) shares soared more than 27% in Thursday’s opening trade after Nvidia Corp. (NVDA) announced an investment of $5 billion in the chip maker.
As part of the deal, Intel and Nvidia will co-develop chips for data centers and personal computers, featuring the x86 architecture. “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,” said Nvidia CEO Jensen Huang.
Patrick Moorhead, founder and CEO of Moor Insights, termed it a “huge deal” in a post on X. “There’s no doubt this is BIG for Intel, GOOD for NVIDIA and If execution lands, this gives Windows AI PCs a credible scaling path and gives data-center buyers an x86 choice inside NVIDIA platforms—without blowing up existing roadmaps,” he said.
Retail users on Stocktwits also pointed toward growing competition from Advanced Micro Devices Inc. (AMD) in the AI chips segment.
Intel’s shares hit a one-year high on Thursday, while Nvidia’s shares were up more than 3% at the time of writing. Retail sentiment around both companies trended in the ‘bullish’ territory on Stocktwits. Intel was also the top trending stock on the platform.
Moorhead added that the Intel-Nvidia partnership “makes life more difficult” for AMD and ARM Plc. (ARM), but noted that it would be hard to assess the impact without more details.
INTC stock is up 57% year-to-date, while NVDA stock is up 31%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.