A major transaction in the global semiconductor industry has moved forward with Nvidia completing a significant equity investment in Intel.
According to a regulatory filing made on Monday, Nvidia has purchased Intel shares worth $5 billion, executing a deal that was first announced in September. The transaction was carried out through a private placement.
As outlined earlier, Nvidia agreed to buy Intel common stock at a fixed price of $23.28 per share. Through this agreement, the AI chipmaker has acquired more than 214.7 million Intel shares. The investment is widely viewed as a financial boost for Intel, which has faced pressure in recent years due to strategic setbacks and heavy spending on expanding manufacturing capacity.
The filing confirmed that the share purchase aligns fully with the terms disclosed under the September agreement. The deal positions Nvidia as a notable shareholder in Intel at a time when the chipmaker is navigating capital intensive operations and a highly competitive semiconductor market.
Regulatory clearance for the transaction has already been secured. A notice posted earlier in December by the US Federal Trade Commission stated that US antitrust authorities had approved Nvidia’s investment in Intel, removing any regulatory hurdles tied to the deal.
Market reaction following the announcement was muted. Nvidia shares were down 1.3% during premarket trading, while Intel’s stock price showed little movement.
The investment brings together two major players in the chip industry, with Nvidia leading the AI accelerator market and Intel continuing its efforts to strengthen its manufacturing and product roadmap. The completion of this transaction marks one of the most high profile strategic equity investments in the semiconductor sector this year.
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