Intel will use Nvidia\u2019s graphics technology in upcoming personal computer chips and also provide its processors for data centre products built around Nvidia hardware.\u00a0<\/p>\n\n\n\n
Intel and Nvidia billed their agreement as a product hook-up that gives them the opportunity to move into areas of the computer market they don\u2019t currently reach, an overall opportunity that may be worth as much as $50 billion a year, according to Nvidia\u2019s chief executive officer Jensen Huang. <\/p>\n\n\n\n
Investors saw the announcement as a shot in the arm for Intel as the company struggles to stem losses and catch competitors, like Nvidia, that it once dwarfed.\u00a0<\/p>\n\n\n\n
Intel shares surged 23% to $30.57 at the close in New York, the biggest single-day jump since October 1987. Nvidia stock gained 3.5% to $176.32 and has increased 31% this year.<\/p>\n\n\n\n
The new funds for Intel follow the US government\u2019s decision in August to take a roughly\u00a010% stake\u00a0in the company and President Donald Trump took on the role of\u00a0pitchman. <\/p>\n\n\n\n
Japan\u2019s SoftBank Group Corp., which has committed to invest tens of billions into US chipmaking and cloud infrastructure, made a surprise\u00a0$2 billion investment\u00a0last month and Intel is also raising cash by selling assets to investors.<\/p>\n\n\n\n
The chipmaker\u2019s current operations, hit by market share losses, can\u2019t shoulder the burden of intensive spending associated with trying to build leading-edge semiconductors. <\/p>\n\n\n\n
On paper, the value of the US government\u2019s stake has\u00a0jumped\u00a0by more than 55%, or $4.9 billion, and is now worth about $14 billion.\u00a0<\/p>\n\n\n\n
\u201cWe thought it was going to be such an incredible investment,\u201d Huang said on a conference call Thursday with his Intel counterpart, Lip-Bu Tan. \u201cThe return on that investment is going to be fantastic.\u201d<\/p>\n\n\n\n
Deal not the work of Trump administration<\/h2>\n\n\n\n![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/06\/Jensen-Huang.jpg\")
Jensen Huang, co-founder and chief executive officer of Nvidia Corp., during the ‘Nvidia GTC’ meeting at the 2025 VivaTech conference in Paris, France, on Wednesday, June 11, 2025. Photographer: Nathan Laine\/Bloomberg<\/figcaption><\/figure>\n\n\n\nHuang said the engineering teams of the two companies have been working on the agreement for about a year and the deal wasn\u2019t prompted by the Trump administration. <\/p>\n\n\n\n
He said he called Secretary of Commerce Howard Lutnick to inform him about the companies\u2019 cooperation and Lutnick\u2019s reaction was \u201csupportive.\u201d<\/p>\n\n\n\n
Under the deal, Intel will offer PC chips that combine general-purpose processing with powerful graphics components from Nvidia, better helping it compete with Advanced Micro Devices Inc., which has been seizing market share in desktops and laptops. \u00a0<\/p>\n\n\n\n
The two companies didn\u2019t offer a timeline for when the first parts will go on sale and said the announcement doesn\u2019t affect their individual future plans. \u00a0<\/p>\n\n\n\n
AMD\u2019s stock fell as much as 5.9% on the news of Nvidia\u2019s investment in Intel before regaining most of the decline.<\/p>\n\n\n\n
AMD is also Nvidia\u2019s closest competitor in graphics chips. Nvidia continues to evaluate whether to outsource production of its chips to Intel, but has no current plans to do so.<\/p>\n\n\n\n
AMD said the announcement hasn\u2019t changed its belief it can keep taking business away from Intel.<\/p>\n\n\n\n
\u201cWe\u2019re confident in our ability to continue driving innovation and market share growth and reinforcing AI as the company\u2019s top strategic priority,\u201d AMD said in an emailed statement.<\/p>\n\n\n\n
The news is \u201cvery marginally negative for AMD,\u201d Wolfe Research analysts said in a note, and likely doesn\u2019t change their thesis for Intel. <\/p>\n\n\n\n
\u201cWhat\u2019s unclear is whether this represents token cooperation intended for political purposes, or if it\u2019s the start of a wider collaboration that would more significantly benefit Intel,\u201d they said.<\/p>\n\n\n\n
\u201cWhether or not Nvidia would be willing to collaborate on manufacturing is a much more important issue,\u201d the Wolfe analysts added, saying Intel suffers from a lack of volume in its manufacturing facilities.<\/p>\n\n\n\n
In data centres, where Nvidia\u2019s artificial intelligence accelerators dominate and have pushed rivals to minor roles, Intel will provide processors for integration into some Nvidia products. <\/p>\n\n\n\n
As Nvidia increasingly combines its AI chips into larger computing clusters, processors are required to handle the general tasks not ideally suited for its graphics semiconductors.<\/p>\n\n\n\n
Effects on Intel<\/h2>\n\n\n\n![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/08\/Lip-Bu-Tan.jpg\")
Lip-Bu Tan, chief executive officer of Intel Corporation, during a news conference in Taipei, Taiwan, on Monday, May 19, 2025. Photographer: Annabelle Chih\/Bloomberg<\/figcaption><\/figure>\n\n\n\nThe deal helps Intel address two of its biggest areas where improvement is needed, according to CEO Tan. <\/p>\n\n\n\n
It helps with one of his priorities to improve his balance sheet and puts Intel on the path to fielding products that will delight customers, he said.\u00a0<\/p>\n\n\n\n
Nvidia currently designs its own processors \u2014 which work alongside the accelerator components \u2014 using technology from Arm Holdings Plc. <\/p>\n\n\n\n
The Intel tie-up should have no impact on Arm, Huang said. Nvidia is proceeding as planned with Arm-based products, he said.<\/p>\n\n\n\n
At Wednesday\u2019s close, Intel had a market value of $116 billion, meaning Nvidia is taking a less than 5% stake. Nvidia has a market capitalization of more than $4 trillion. <\/p>\n\n\n\n
Nvidia\u2019s power to determine the future of the industry, and now Intel\u2019s pragmatic attempt to work alongside it, is based on Nvidia\u2019s utter dominance of AI computing. <\/p>\n\n\n\n
The company saw the need for new types of chips and software ahead of the debut of services such as ChatGPT from OpenAI and had them ready before any of its rivals. <\/p>\n\n\n\n
When the world\u2019s biggest companies rushed to build data centers to make sure they could compete in the new era of computing, they turned to Nvidia\u2019s chips.<\/p>\n\n\n\n
As recently as 2022, Intel had more than twice as much revenue as Nvidia. The company that gave Silicon Valley its name dominated computing from laptops to data centres with its microprocessors. <\/p>\n\n\n\n
But it was slow to field the type of accelerator chip that Nvidia offers for AI and has failed to garner meaningful market share in that area.<\/p>\n\n\n\n
This year, Nvidia is on course for sales of about $200 billion, according to Wall Street estimates. At some point next year, it\u2019ll be pulling in more revenue per quarter than Intel gets in a year. <\/p>\n\n\n\n
Its data centre unit alone is bigger than any other chip company\u2019s sales.<\/p>\n\n\n\n
Intel\u2019s failure to anticipate and exploit spending on AI-specific computing compounded the problems it was suffering from a loss of manufacturing leadership. <\/p>\n\n\n\n
For decades, Intel plants had the best manufacturing technology making its products better, even if others produced comparable designs.\u00a0<\/p>\n\n\n\n
Now it\u2019s forced to turn to Taiwan Semiconductor Manufacturing Co. to produce its best chips. TSMC\u2019s rapid improvements in technology have enabled many companies \u2013 from Apple Inc. to Nvidia \u2013 to turn good designs into industry-leading products.<\/p>\n\n\n\n
Under new leader Tan, brought in earlier this year to replace the ousted Pat Gelsinger, Intel has said it will pursue a more open approach, seeking out partnerships and opening its plants to rivals.<\/p>\n","protected":false},"excerpt":{"rendered":"
Investors saw the announcement as a shot in the arm for Intel as the company struggles to stem losses and catch competitors, like Nvidia, that it once dwarfed.\u00a0<\/p>\n","protected":false},"author":341034,"featured_media":562620,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[19],"tags":[73014,45080,131,76672,99128,3838,58662],"class_list":["post-611513","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-chip-manufacturers","tag-chip-manufacturing","tag-intel","tag-jensen-huang","tag-lip-bu-tan","tag-nvidia","tag-president-donald-trump"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/611513"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=611513"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/611513\/revisions"}],"predecessor-version":[{"id":611520,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/611513\/revisions\/611520"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/562620"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=611513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=611513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=611513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Huang said the engineering teams of the two companies have been working on the agreement for about a year and the deal wasn\u2019t prompted by the Trump administration. <\/p>\n\n\n\n
He said he called Secretary of Commerce Howard Lutnick to inform him about the companies\u2019 cooperation and Lutnick\u2019s reaction was \u201csupportive.\u201d<\/p>\n\n\n\n
Under the deal, Intel will offer PC chips that combine general-purpose processing with powerful graphics components from Nvidia, better helping it compete with Advanced Micro Devices Inc., which has been seizing market share in desktops and laptops. \u00a0<\/p>\n\n\n\n
The two companies didn\u2019t offer a timeline for when the first parts will go on sale and said the announcement doesn\u2019t affect their individual future plans. \u00a0<\/p>\n\n\n\n
AMD\u2019s stock fell as much as 5.9% on the news of Nvidia\u2019s investment in Intel before regaining most of the decline.<\/p>\n\n\n\n
AMD is also Nvidia\u2019s closest competitor in graphics chips. Nvidia continues to evaluate whether to outsource production of its chips to Intel, but has no current plans to do so.<\/p>\n\n\n\n
AMD said the announcement hasn\u2019t changed its belief it can keep taking business away from Intel.<\/p>\n\n\n\n
\u201cWe\u2019re confident in our ability to continue driving innovation and market share growth and reinforcing AI as the company\u2019s top strategic priority,\u201d AMD said in an emailed statement.<\/p>\n\n\n\n
The news is \u201cvery marginally negative for AMD,\u201d Wolfe Research analysts said in a note, and likely doesn\u2019t change their thesis for Intel. <\/p>\n\n\n\n
\u201cWhat\u2019s unclear is whether this represents token cooperation intended for political purposes, or if it\u2019s the start of a wider collaboration that would more significantly benefit Intel,\u201d they said.<\/p>\n\n\n\n
\u201cWhether or not Nvidia would be willing to collaborate on manufacturing is a much more important issue,\u201d the Wolfe analysts added, saying Intel suffers from a lack of volume in its manufacturing facilities.<\/p>\n\n\n\n
In data centres, where Nvidia\u2019s artificial intelligence accelerators dominate and have pushed rivals to minor roles, Intel will provide processors for integration into some Nvidia products. <\/p>\n\n\n\n
As Nvidia increasingly combines its AI chips into larger computing clusters, processors are required to handle the general tasks not ideally suited for its graphics semiconductors.<\/p>\n\n\n\n
Effects on Intel<\/h2>\n\n\n\nLip-Bu Tan, chief executive officer of Intel Corporation, during a news conference in Taipei, Taiwan, on Monday, May 19, 2025. Photographer: Annabelle Chih\/Bloomberg<\/figcaption><\/figure>\n\n\n\nThe deal helps Intel address two of its biggest areas where improvement is needed, according to CEO Tan. <\/p>\n\n\n\n
It helps with one of his priorities to improve his balance sheet and puts Intel on the path to fielding products that will delight customers, he said.\u00a0<\/p>\n\n\n\n
Nvidia currently designs its own processors \u2014 which work alongside the accelerator components \u2014 using technology from Arm Holdings Plc. <\/p>\n\n\n\n
The Intel tie-up should have no impact on Arm, Huang said. Nvidia is proceeding as planned with Arm-based products, he said.<\/p>\n\n\n\n
At Wednesday\u2019s close, Intel had a market value of $116 billion, meaning Nvidia is taking a less than 5% stake. Nvidia has a market capitalization of more than $4 trillion. <\/p>\n\n\n\n
Nvidia\u2019s power to determine the future of the industry, and now Intel\u2019s pragmatic attempt to work alongside it, is based on Nvidia\u2019s utter dominance of AI computing. <\/p>\n\n\n\n
The company saw the need for new types of chips and software ahead of the debut of services such as ChatGPT from OpenAI and had them ready before any of its rivals. <\/p>\n\n\n\n
When the world\u2019s biggest companies rushed to build data centers to make sure they could compete in the new era of computing, they turned to Nvidia\u2019s chips.<\/p>\n\n\n\n
As recently as 2022, Intel had more than twice as much revenue as Nvidia. The company that gave Silicon Valley its name dominated computing from laptops to data centres with its microprocessors. <\/p>\n\n\n\n
But it was slow to field the type of accelerator chip that Nvidia offers for AI and has failed to garner meaningful market share in that area.<\/p>\n\n\n\n
This year, Nvidia is on course for sales of about $200 billion, according to Wall Street estimates. At some point next year, it\u2019ll be pulling in more revenue per quarter than Intel gets in a year. <\/p>\n\n\n\n
Its data centre unit alone is bigger than any other chip company\u2019s sales.<\/p>\n\n\n\n
Intel\u2019s failure to anticipate and exploit spending on AI-specific computing compounded the problems it was suffering from a loss of manufacturing leadership. <\/p>\n\n\n\n
For decades, Intel plants had the best manufacturing technology making its products better, even if others produced comparable designs.\u00a0<\/p>\n\n\n\n
Now it\u2019s forced to turn to Taiwan Semiconductor Manufacturing Co. to produce its best chips. TSMC\u2019s rapid improvements in technology have enabled many companies \u2013 from Apple Inc. to Nvidia \u2013 to turn good designs into industry-leading products.<\/p>\n\n\n\n
Under new leader Tan, brought in earlier this year to replace the ousted Pat Gelsinger, Intel has said it will pursue a more open approach, seeking out partnerships and opening its plants to rivals.<\/p>\n","protected":false},"excerpt":{"rendered":"
Investors saw the announcement as a shot in the arm for Intel as the company struggles to stem losses and catch competitors, like Nvidia, that it once dwarfed.\u00a0<\/p>\n","protected":false},"author":341034,"featured_media":562620,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[19],"tags":[73014,45080,131,76672,99128,3838,58662],"class_list":["post-611513","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-chip-manufacturers","tag-chip-manufacturing","tag-intel","tag-jensen-huang","tag-lip-bu-tan","tag-nvidia","tag-president-donald-trump"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/611513"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=611513"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/611513\/revisions"}],"predecessor-version":[{"id":611520,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/611513\/revisions\/611520"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/562620"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=611513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=611513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=611513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
The deal helps Intel address two of its biggest areas where improvement is needed, according to CEO Tan. <\/p>\n\n\n\n
It helps with one of his priorities to improve his balance sheet and puts Intel on the path to fielding products that will delight customers, he said.\u00a0<\/p>\n\n\n\n
Nvidia currently designs its own processors \u2014 which work alongside the accelerator components \u2014 using technology from Arm Holdings Plc. <\/p>\n\n\n\n
The Intel tie-up should have no impact on Arm, Huang said. Nvidia is proceeding as planned with Arm-based products, he said.<\/p>\n\n\n\n
At Wednesday\u2019s close, Intel had a market value of $116 billion, meaning Nvidia is taking a less than 5% stake. Nvidia has a market capitalization of more than $4 trillion. <\/p>\n\n\n\n
Nvidia\u2019s power to determine the future of the industry, and now Intel\u2019s pragmatic attempt to work alongside it, is based on Nvidia\u2019s utter dominance of AI computing. <\/p>\n\n\n\n
The company saw the need for new types of chips and software ahead of the debut of services such as ChatGPT from OpenAI and had them ready before any of its rivals. <\/p>\n\n\n\n
When the world\u2019s biggest companies rushed to build data centers to make sure they could compete in the new era of computing, they turned to Nvidia\u2019s chips.<\/p>\n\n\n\n
As recently as 2022, Intel had more than twice as much revenue as Nvidia. The company that gave Silicon Valley its name dominated computing from laptops to data centres with its microprocessors. <\/p>\n\n\n\n
But it was slow to field the type of accelerator chip that Nvidia offers for AI and has failed to garner meaningful market share in that area.<\/p>\n\n\n\n
This year, Nvidia is on course for sales of about $200 billion, according to Wall Street estimates. At some point next year, it\u2019ll be pulling in more revenue per quarter than Intel gets in a year. <\/p>\n\n\n\n
Its data centre unit alone is bigger than any other chip company\u2019s sales.<\/p>\n\n\n\n
Intel\u2019s failure to anticipate and exploit spending on AI-specific computing compounded the problems it was suffering from a loss of manufacturing leadership. <\/p>\n\n\n\n
For decades, Intel plants had the best manufacturing technology making its products better, even if others produced comparable designs.\u00a0<\/p>\n\n\n\n
Now it\u2019s forced to turn to Taiwan Semiconductor Manufacturing Co. to produce its best chips. TSMC\u2019s rapid improvements in technology have enabled many companies \u2013 from Apple Inc. to Nvidia \u2013 to turn good designs into industry-leading products.<\/p>\n\n\n\n
Under new leader Tan, brought in earlier this year to replace the ousted Pat Gelsinger, Intel has said it will pursue a more open approach, seeking out partnerships and opening its plants to rivals.<\/p>\n","protected":false},"excerpt":{"rendered":"
Investors saw the announcement as a shot in the arm for Intel as the company struggles to stem losses and catch competitors, like Nvidia, that it once dwarfed.\u00a0<\/p>\n","protected":false},"author":341034,"featured_media":562620,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[19],"tags":[73014,45080,131,76672,99128,3838,58662],"class_list":["post-611513","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-chip-manufacturers","tag-chip-manufacturing","tag-intel","tag-jensen-huang","tag-lip-bu-tan","tag-nvidia","tag-president-donald-trump"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/611513"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=611513"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/611513\/revisions"}],"predecessor-version":[{"id":611520,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/611513\/revisions\/611520"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/562620"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=611513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=611513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=611513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}