top of page
BW-2020logo.png
Search

Intel’s newest partnership and what’s next for the company

  • Buster Wurm
  • 1 day ago
  • 2 min read

Updated: 1 day ago

ree

Intel has recently attracted significant attention from both the U.S. government and Nvidia, signaling a pivotal moment for the company and the broader semiconductor sector. 


On August 18th, 2025, the U.S. government announced that it would purchase $8.9 billion worth of Intel common stock, thereby securing a 9.9% stake in the company. The shares are non-voting, meaning Washington will not take board seats, but the move demonstrates strong federal support for Intel’s role in domestic chip manufacturing. The purchase is partly funded through the CHIPS and Science Act and related programs, designed to boost U.S. technological self-sufficiency and reduce reliance on foreign supply chains. 


Exactly one month later, on September 18th, 2025, Nvidia revealed a $5 billion investment in Intel common stock, becoming one of the company’s largest shareholders. Beyond the capital infusion, the partnership is strategically significant: Intel will produce custom x86 CPUs for Nvidia’s AI infrastructure and integrate Nvidia GPU chips into specific Intel platforms. This collaboration positions Intel to reassert relevance in the AI hardware race, an area where it has lagged rivals like AMD and TSMC. 


The market’s response to this news was quick. Intel’s stock surged more than 20% following the Nvidia announcement and closed at 22%, reflecting renewed optimism. The U.S. government’s backing further bolsters investor confidence, reducing the perceived risk associated with Intel’s long-term viability. Still, risks remain. The government’s purchase at discounted prices raises speculative concerns about dilution in stock, and Intel’s tight alignment with federal priorities could potentially complicate relationships with foreign customers.  


Risk remains because Intel must prove it can deliver advanced CPUs, meet scale, and stay competitive in processing technology because of the new investment.   

Overall, these moves could reshape Intel’s trajectory. Government investment provides stability, while Nvidia’s stake offers technology synergies and relevance in AI. If Intel executes effectively, it could regain market share and strengthen U.S. leadership in semiconductors, though much depends on delivering results that match heightened expectations.


Sources:




://www.businessinsider.com/us-intel-deal-risks-dilute-shares-international-sales-funding-2025-8 

 
 
 
bottom of page