NVIDIA Corporation (NVDA) Stock: Takes $5 Billion Stake in Intel After FTC Clearance

TLDR

• Nvidia completed a $5 billion equity investment in Intel through a private placement.
• The deal values Intel shares at $23.28 each, based on a September agreement.
• U.S. antitrust regulators cleared the transaction earlier in December.
• The move provides Intel with financial stability after years of heavy capital spending.
• Nvidia continues to outperform the broader market on long-term returns.

NVIDIA Corporation (NVDA) stock traded at $186.88, down 1.91%, during the latest Nasdaq session as investors digested news of a major strategic investment. The leading AI chip designer has finalized its long-anticipated $5 billion equity stake in Intel, executing a transaction first announced in September.

NVIDIA Corporation, NVDA

The purchase underscores Nvidia’s growing influence across the semiconductor ecosystem while offering Intel a crucial financial boost.

In a regulatory filing released Monday, Nvidia confirmed it acquired Intel shares worth $5 billion under the terms set earlier this year. The transaction was completed through a private placement and involved the purchase of more than 214.7 million Intel common shares at a fixed price of $23.28 per share.

Details of the September Agreement

The deal was originally unveiled in September and drew widespread attention across global markets. At the time, Nvidia agreed to pay a premium of about 6% above Intel’s prevailing market price. Market conditions have since shifted, leaving the agreed price roughly 36% below Intel’s current trading level.

According to the filing, Nvidia purchased 214.7 million shares, cementing its position as a major strategic investor in Intel. Some reports had initially cited figures above 217 million shares, though the final number reflects the executed placement outlined in Monday’s disclosure.

This investment came at a critical moment for Intel, which had faced years of financial strain due to aggressive capital expenditure and delayed manufacturing transitions.

FTC Clearance and Regulatory Backing

The transaction received regulatory clearance from U.S. antitrust authorities earlier in December. A notice posted by the Federal Trade Commission confirmed that Nvidia’s investment raised no competition concerns, clearing the final hurdle for completion.

Regulatory approval was closely watched given Nvidia’s dominant role in AI chips and Intel’s strategic importance to U.S. semiconductor manufacturing. The clearance reinforced Washington’s broader goal of stabilizing domestic chip production amid global supply chain pressures.

Intel’s Recovery and Strategic Context

Intel’s valuation has rebounded sharply since its lows in 2024 and much of 2025. The chipmaker is now valued at about $172.67 billion, compared with levels as low as $82.71 billion during its downturn. Years of heavy spending on new fabrication facilities had weighed on Intel’s balance sheet, while leadership controversies added pressure.

Those concerns peaked when political scrutiny surrounded CEO Lip-Bu Tan, prompting discussions within Washington about Intel’s strategic direction. That episode later eased, paving the way for the U.S. government to take an $8.9 billion stake in Intel, complementing Nvidia’s private investment.

Shortly after these developments, Nvidia and Intel revealed plans around Intel x86 RTX system-on-chips. While no release timeline has been shared, the collaboration signals a rare alignment between two longtime rivals.

Foundry Ambitions and Industry Impact

Intel’s foundry business has begun showing signs of renewed momentum. Early adoption of High-NA EUV lithography positions the company to compete more effectively with TSMC’s U.S. operations. Nvidia’s involvement adds credibility to those ambitions, given its dependence on advanced manufacturing for AI accelerators.

When the joint efforts eventually materialize, they could reshape competitive dynamics across data centers, AI workloads, and advanced computing platforms.

Nvidia Stock Performance Remains Dominant

Despite the day’s decline, Nvidia’s long-term stock performance remains exceptional. Year-to-date, NVDA shares are up 39.20%, more than double the S&P 500’s 17.15% gain. The one-year return stands at 36.43%.

Over three years, Nvidia has delivered a staggering 1,180.98% return, while the five-year gain exceeds 1,347%. These figures highlight Nvidia’s transformation into the most influential company in the AI era.

The Intel investment reinforces Nvidia’s strategic reach beyond graphics and accelerators. As regulatory clarity settles and partnerships evolve, investors are likely to view the $5 billion stake as a long-term bet on U.S. semiconductor resilience rather than a short-term trade.

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