Nvidia, Intel Shares Jump After US Antitrust Agencies Clear $5B Deal That Deepens Their Chip Partnership

• The Federal Trade Commission announced the clearance of the transaction on a notice on its website on Friday.
• The two companies said in September that they intend to co-develop chips for data centers and personal computers as part of the deal. 
• Patrick Moorhead, founder and CEO of Moor Insights had termed it a “huge deal.”

Shares of Intel (INTC) and Nvidia (NVDA) rose over 3% on Friday after the U.S. Federal Trade Commission cleared the latter’s $5 billion investment in Intel.

The Federal Trade Commission announced the clearance of the transaction on a notice on its website on Friday. Nvidia announced plans to invest $5 billion in ailing Intel in September at a purchase price of $23.28 per share, sending INTL shares soaring 22.8%, and joining the Trump administration in supporting Intel’s turnaround.  

$5B Investment Announcement

The two companies said in September that they intend to co-develop chips for data centers and personal computers as part of the deal.

Intel will build x86 central processing units for Nvidia’s AI infrastructure platforms, the two companies then said. For personal computing, Intel will build x86 system-on-chips integrating Nvidia’s RTX graphics processing units which will power a wide range of PCs, they added.

“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 had termed it a “huge deal.” “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.

The Trump administration invested $8.9 billion in Intel and bought 433.3 million shares earlier in August at a price of $20.47 per share. The purchase was equivalent to a 9.9% stake in the company. Softbank Group also invested $2 billion in Intel in August.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around NVDA and INTC trended within the ‘bearish’ territory while message volume remained at ‘low’ levels.

NVDA stock has gained 35% this year while INTC rose 87%.

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