NVIDIA takes $5B stake in Intel
What's the story
NVIDIA has acquired a stake in Intel worth $5 billion, the semiconductor giant confirmed through a filing on Monday. The transaction was first announced in September. Under the agreement, NVIDIA would pay $23.28 per share for Intel common stock. The deal is considered a major financial boost for Intel after years of costly production capacity expansions and other missteps that have hurt its finances.
Share details
NVIDIA's acquisition secures over 214 million Intel shares
NVIDIA has acquired more than 214 million Intel shares at the price agreed upon in September. The acquisition was done through a private placement, as per Monday's filing. This strategic move by NVIDIA comes after US antitrust agencies approved its investment in Intel earlier this month.
Stock performance
Market response to NVIDIA's investment in Intel
Following the news of NVIDIA's investment, shares of both companies reacted differently. While NVIDIA's shares fell by 1.8% in trading, Intel's stock rose by 0.4%. The mixed market response highlights the varying investor sentiment toward this high-profile deal between two tech giants.