Chipmaker Intel (NAS100: INTC) jumped higher after news of an investment by Nvidia was announced.
INTC – Weekly Chart
INTC shares moved sharply above resistance at $26.44, and the stock may look to target $37.22.
Nvidia announced on Thursday that it will be investing $5 billion in Intel and the two companies will collaborate on future chips and PCs. Work will also be done together on custom data centres, according to the Nvidia press release.
The investment, which is subject to regulatory approvals, comes a month after the U.S. government took a 10% stake in Intel.
“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,” Nvidia CEO Jensen Huang said. “Together, we will expand our ecosystems and lay the foundation for the next era of computing”.
Intel shares improved by 22%, marking the most significant one-day percentage gain in decades for the company, which has struggled as the chip sector shifts to AI. The latest agreement is a lifeline for Intel, which also lost its dominance after the shift to mobile device computing.
Last year was a tough one for the chipmaker, with a loss of almost $19 billion and another $3.7 billion in the first six months of 2025. The U.S. government moved last month to support the company by taking a 10% stake, making it one of Intel’s largest shareholders. Officials said the goal was to boost U.S. technology dominance and domestic manufacturing capabilities. The latest news could see new investors coming onboard, and Wedbush tech analysts said it was a “bullish” move for the sector.
“This is a game-changer deal for Intel as it now brings them front and center into the AI game,” Dan Ives said. “Along with the recent U.S. government investment for 10% (equity stake in Intel) this has been a golden few weeks for Intel after years of pain and frustration for investors”.
The development helped lift the Nasdaq 100 to a 1% gain on the day and keeps the bull run in force.
