NVIDIA and Intel

NVIDIA CEO Jensen Huang called it “a convergence of two world-class platforms,” ​​combining Intel’s power in making traditional computer chips, called CPUs, that is, most laptops, NVIDIA’s focus is on professional graphics chips that NVIDIA is crucial to artificial intelligence. “This partnership recognizes that computing has changed fundamentally,” Huang told reporters on Thursday. “The era of acceleration and AI computing has arrived.”

Intel shares have risen nearly 23% since 1987, its largest one-day share growth. NVIDIA shares rose by more than 3%.

NVIDIA deals and our support give Intel much-needed boost

For data centers, Intel will make custom chips that NVIDIA will use in its AI infrastructure platform. For personal computer products, Intel will build chips that integrate NVIDIA technology.

The protocol provides a lifeline for Intel, a Silicon Valley pioneer that grew for decades as processors flourished for personal computers, but missed the shift in the mobile computing era when the iPhone debuted in 2007, but lacked a shift in the mobile computing era. In recent years, Intel has pushed NVIDIA to the most valuable company in the world during the AI ​​boom. Intel lost nearly $19 billion last year, another $3.7 billion in the first six months of the year, and expects to cut its workforce to a quarter by the end of 2025.

U.S. President Donald Trump’s administration was promoted last month to acquire a 10% stake, or 433.3 million shares of unvoted stocks, at $20.47, making it one of Intel’s largest shareholders. Federal officials said they invested in Intel to strengthen U.S. technology and domestic manufacturing. In NVIDIA’s own Intel shares, Huang said: “The Trump administration is not involved in this partnership at all.” Although of course, it is very supportive. ”

Intel’s share price gains on Thursday raised the total value of the U.S. government stake in Intel to $13.2 billion, an increase of $2.5 billion from the NVIDIA’s announcement.

NVIDIA – Intel PACT ‘Game Change’ for US technology

Huang said Envidia has held talks with Intel for about a year. Intel CEO Lip-bu Tan joined Huang on Thursday to join the press call, saying he has been talking to Nvidia since he was appointed Intel’s new leader in March. “It’s a very important milestone,” Tan said. “I call it a game-changing opportunity and we can work together.”

Wedbush Securities analyst Daniel Ives said in client notes that the deal was “a bullish on U.S. technology.” Ives said this brings Intel “the positive and center of AI gaming” and coupled with a stake in the U.S. government, adding “Intel’s golden weeks has increased after years of investor pain and frustration.”

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At the same time, Nvidia soared because its specialized chips are the basis for the prosperity of AI. These chips (called graphics processing units or GPUs) are very effective in developing powerful AI systems.

What remains Thursday is another rival of U.S. chip-making rival premium micro-device. Stocks of leading manufacturers of GPUs and CPUs fell slightly on Thursday. AMD, Intel and Nvidia are both headquartered in Santa Clara, California.

CHIP competition intensifies as China strengthens Huawei and bans NVIDIA

The deal between NVIDIA and INTEL is as China Mobile reduces its dependence on U.S. semiconductor technology. This week, Chinese officials banned several large domestic technology companies from purchasing NVIDIA chips, and China-based Huawei announced it was expanding its AI chip and manufacturing industry development.

While Nvidia and Intel will work together to develop new chips, there is no manufacturing agreement between the two. NVIDIA’s potential entry into Intel chip foundry poses a risk to Taiwan’s semiconductor manufacturing company, which currently produces flagship processors from the technology giant. Huang stressed on Thursday that his company and Intel remain “very successful customers” of TSMC. Huang has been on a visit to the UK, which coincides with Trump’s trip to the country, and he has been attending the president’s events with other Silicon Valley Grand Samurai teams.

At the signing ceremony of the transatlantic tech partnership with British Prime Minister Keir Starmer on Thursday, Trump was addicted to AI “take over the world.” “I’m looking at you. Jansen, you’re taking over the world.” Both Huang and Trump attended the Royal Banquet, prompting tech tycoons to introduce the Windsor Castle event to Intel’s CEO within seconds before the press conference. “Cognac is very good, but not enough,” Huang told Tan. “I think cognac started in 1912.”