Intel Shares Surge on Privatization Buzz, Nvidia's $5B Stake
Former directors advocate for a take-private deal, while a new partnership with a key rival signals a strategic shift for the legacy chipmaker.
Intel (INTC) is back in the spotlight after a confluence of extraordinary events, including a public call from former directors to take the company private and a landmark $5 billion investment from rival Nvidia (NVDA), sent its stock soaring.
The legacy chipmaker's shares jumped over 22% on Thursday, fueled by the dramatic news that suggests a major strategic overhaul is underway. The surge followed a proposal from four former Intel directors for the company to be taken private, a move they argue is necessary to navigate the challenging competitive landscape. The former directors even suggested a potential partnership with the Trump administration and Nvidia to facilitate the deal, according to a report from .
Adding to the bullish sentiment, Nvidia announced a strategic collaboration with Intel, backed by a $5 billion investment. This partnership, as reported by , will see the two semiconductor giants co-develop custom data center chips for AI infrastructure and integrate Nvidia's GPU technology into Intel's PC products. Nvidia will acquire Intel common stock at $23.28 per share, making it one of Intel's largest shareholders.
The deal is a significant lifeline for Intel, which has been working to regain its footing in the semiconductor industry. It also represents a major endorsement from a key competitor. Nvidia CEO Jensen Huang expressed his confidence in Intel's turnaround, stating that the return on the investment would be "fantastic," as noted in .
The combination of the privatization proposal and the Nvidia partnership has ignited investor optimism, suggesting that Intel may be on the cusp of a significant transformation. The developments are a clear signal that the company is exploring bold moves to revitalize its business and reclaim its leadership position in the chip market.