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Nvidia is investing $5 billion in Intel at $23.28 per share, a discount to Intel’s post-announcement price of $30. This partnership will enable Intel to integrate Nvidia’s technologies, including NVLink and GeForce graphics, into custom chips for data centers and personal computers, aimed at helping Intel catch up with competitors like AMD and Qualcomm.
Intel’s recent capital expenditures have exceeded $25 billion for fiscal years 2022 and 2023, with an additional $79 billion planned for research and development over five years. The company also received an $8.9 billion investment from the U.S. government, partially through the Biden administration’s CHIPS Act, to support its infrastructure buildout.
This collaboration is expected to bring hybrid chips to market in about two years, potentially marking a significant turnaround for Intel, which has seen its stock rise over 71% from multiyear lows following news of the Nvidia partnership.
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