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Nvidia Invests $5 Billion in Rival Intel
30 Dec
Summary
- Nvidia has acquired Intel shares for $5 billion.
- The transaction was announced in September and finalized recently.
- U.S. antitrust agencies have approved Nvidia's investment in Intel.
Nvidia has completed a substantial $5 billion investment in Intel, acquiring over 214.7 million shares of common stock. This private placement, initially announced in September, injects significant capital into Intel, a move widely seen as a critical financial support for the chipmaker.
The company's recent financial filings confirmed the transaction, which was made at a set price of $23.28 per share. This investment comes after Intel's extensive capital expenditure on production capacity and strategic missteps that have strained its finances over recent years.
Crucially, U.S. antitrust agencies, including the Federal Trade Commission, have granted clearance for Nvidia's investment. As of the filing, Nvidia shares were down 1.8%, while Intel's stock saw a 0.4% increase.
