Nvidia Completes ₹44,929 Crore Investment in Intel, Providing Critical Financial Lifeline

Nvidia, the world's leading designer of Artificial Intelligence (AI) chips and currently the most valuable firm globally, has finalised a significant $5 billion (roughly ₹44,929 crore) investment in rival semiconductor giant Intel. The transaction, which involved the purchase of Intel common stock, was officially announced in a filing on Monday, executing a plan initially disclosed in September.

Terms of the Strategic Acquisition

According to the filing, Nvidia acquired over 214.7 million shares of Intel common stock. This large-scale purchase was carried out at a pre-agreed price of $23.28 per share, as stipulated in the September agreement. The transaction was structured as a private placement, a direct sale of stock to Nvidia, bypassing a public offering.

A Crucial Financial Boost for Intel

This substantial infusion of capital is widely viewed as a critical financial lifeline for Intel. The chipmaker has faced considerable financial pressures in recent years, stemming from a series of reported strategic missteps and costly, capital-intensive expansions of its production capacity, which have collectively strained the company's balance sheet. The $5 billion investment provides much-needed liquidity and demonstrates a significant vote of financial confidence from a major industry peer.

Regulatory Clearances

The strategic investment underwent and successfully cleared regulatory review by US antitrust agencies. A notice posted by the US Federal Trade Commission (FTC) earlier in December confirmed that the deal had received the necessary government approval, allowing the transaction to proceed without regulatory hindrance.

Market Reaction

Following the news of the finalised deal and the Monday filing, the stock market showed a mixed, though relatively muted, reaction. Nvidia's shares experienced a slight dip, trading down 1.3 per cent in premarket trading. Conversely, Intel's stock saw little change, suggesting that the market had largely priced in the expected impact of the investment since its initial announcement in September.

Read more: iPhone 17 Pro Price Discounted by Over ₹9,000: Check Out This Deal