NVIDIA has bought Intel shares worth $5B
What's the story
NVIDIA has acquired a $5 billion stake in Intel, as per a filing by the US semiconductor company. The deal was first announced back in September, with NVIDIA agreeing to pay $23.28 per share for Intel's common stock. This strategic move is seen as a major financial boost for Intel, after years of challenges and costly production capacity expansions that have strained its finances.
Share details
NVIDIA's acquisition involves over 214M Intel shares
The deal, carried out through a private placement, has seen NVIDIA acquire more than 214.7 million Intel stocks at the price agreed upon in September. The move comes after US antitrust agencies approved NVIDIA's investment in Intel earlier this month. Despite the news of this major acquisition, NVIDIA's shares fell by around 1.3% in premarket trading while Intel stock remained relatively stable.
Future
A threat to TSMC
This investment makes NVIDIA one of Intel's biggest shareholders. It comes as a major boost for Intel and also poses a possible threat to Taiwan's TSMC, which currently builds NVIDIA's flagship chips.