NEW YORK, December 29, 2025, 11:19 ET — Regular session
- Intel shares were up 0.5% at $36.39 in late morning trading.
- A filing showed Intel completed a $5 billion private sale of 214.8 million new shares to Nvidia at $23.28 each.
- Investors are weighing the cash boost against dilution, and watching for updates on the companies’ joint chip roadmap.
Intel Corp (INTC.O) shares edged higher on Monday after the chipmaker disclosed that Nvidia (NVDA.O) has completed a $5 billion purchase of newly issued Intel stock.
The closing matters because it turns a headline partnership into cash on Intel’s balance sheet at a time the company is spending heavily and trying to regain momentum in PCs and data-center processors.
It also crystallizes a key trade-off for existing shareholders: the stock was sold at a fixed $23.28 per share, far below Intel’s current trading level, increasing dilution even as it brings in fresh capital.
In a Form 8-K, Intel said it completed the issuance and sale of 214,776,632 shares to Nvidia for $5.0 billion in cash, or $23.28 per share.
Intel said the sale was carried out under a securities purchase agreement dated Sept. 15 and structured as a private placement — a sale to a single investor outside a public offering — relying on an exemption from registration requirements.
A Reuters report said U.S. antitrust agencies cleared Nvidia’s investment earlier in December, removing a regulatory overhang on the deal.
Intel’s move came as the broader market slipped, with the Nasdaq-heavy Invesco QQQ down 0.6% and the SPDR S&P 500 ETF down 0.4%.
Chip stocks were broadly weaker, with the iShares Semiconductor ETF down about 1% and Nvidia down about 2% on the day.
The deal price implies a discount of roughly 36% to Intel’s prior close, based on Monday’s trading.
When the partnership was announced in September, Nvidia said Intel would design custom x86 data-center CPUs that Nvidia would package with its AI chips, using NVLink — Nvidia’s proprietary high-speed link that lets chips exchange data faster.
For PCs, Nvidia said Intel planned x86 system-on-chips that integrate Nvidia RTX graphics “chiplets,” or smaller silicon building blocks combined in a single package. NVIDIA Newsroom
“Together, we will expand our ecosystems and lay the foundation for the next era of computing,” Nvidia CEO Jensen Huang said at the time. NVIDIA Newsroom
Reuters reported in September that the investment would leave Nvidia with roughly 4% of Intel after the new shares were issued, putting the AI chipmaker among Intel’s largest shareholders.
Investors are now looking for concrete product timelines — which the companies did not provide when they first outlined “multiple generations” of joint chips — and for signs the relationship expands further into Intel’s contract manufacturing business, known as a foundry. Reuters
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