Intel’s stock got a fresh lift on Monday as the chipmaker sold a large chunk of its shares to Nvidia for $5 billion.
Deal Details
Intel completed a private placement of 214.8 million common shares to Nvidia at $23.28 per share. The transaction, filed with the SEC, brought in $5 billion in cash and was carried out under a Securities Purchase Agreement.
Why the Stock Jumped
Following the announcement, Intel shares edged up to $36.29 in pre‑market trading on the Nasdaq. The news gave investors confidence that the cash infusion and Nvidia’s partnership will strengthen Intel’s position in the fast‑growing AI market.
Intel’s Recent Turnaround
- Shares are up about 80% in 2025, recovering from a 60% drop in 2024.
- Strong capital spending on new U.S. and European fabs is boosting production capacity.
- Third‑quarter 2025 non‑GAAP gross profit rose to $5.45 billion, up from $2.39 billion a year earlier.
- Operating margin improved to 40%, well above the 18% seen a year ago.
- Momentum in the AI sector is driving higher demand for Intel’s chips.
Future Moves
Intel is also in advanced talks to buy AI‑chip startup SambaNova Systems for roughly $1.6 billion, including debt. If the deal closes next month, it could further bolster Intel’s AI capabilities.
Key Takeaways for Investors
- The $5 billion cash from Nvidia gives Intel a strong balance‑sheet boost.
- Strategic collaboration with Nvidia may accelerate Intel’s AI product roadmap.
- Recent financial results show a clear improvement in profitability.
- Potential acquisition of SambaNova could expand Intel’s AI chip portfolio.
Remember, this is perspective, not a prediction. Do your own research and consider consulting a certified financial adviser before making any investment decisions.