Key Points
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Nvidia is investing $5 billion in Intel and partnering on custom data center and PC chips.
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Intel’s latest quarter showed flat revenue, margin pressure, and cautious guidance as the turnaround continues.
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If the deal accelerates product traction and cost discipline, today’s valuation may be reasonable — though risks remain.
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Nvidia is investing $5 billion in Intel and partnering on custom data center and PC chips.
Intel’s latest quarter showed flat revenue, margin pressure, and cautious guidance as the turnaround continues.
If the deal accelerates product traction and cost discipline, today’s valuation may be reasonable — though risks remain.
Intel (NASDAQ: INTC) has a new and powerful ally. On Thursday, Nvidia (NASDAQ: NVDA) said it will invest $5 billion in Intel and codevelop multiple generations of custom products, spanning data centers and PCs. Intel shares jumped more than 20% on the news, as investors digested what a tie-up with the leader in artificial intelligence (AI) computing could mean for the company’s multiyear turnaround.
The semiconductor veteran designs and manufactures CPUs and runs a contract manufacturing business. In recent years, Intel has…
