- Nvidia market value jumps $150bn to $4.28tn after surprise Intel collaboration revealed
- Company’s $5bn Intel investment dwarfed by $150bn surge in own valuation
- Partnership focuses on custom x86 CPUs for AI platforms and consumer processor
Nvidia’s market value jumped by about $150 billion following the surprise news of a sweeping partnership with Intel.
To put things in context, that gain is larger than Intel’s entire market capitalization.
Nvidia’s value climbed from about $4.13 trillion on September 17 to $4.28 trillion a day later. The surge in Nvidia’s market value was around 30 times the size of its $5 billion investment in Intel stock (at $23.28 per share).
A Trump-free deal
The sharp rise reflected investor confidence in the deal, which will see Intel build custom x86 CPUs for Nvidia’s data center platforms, while also producing chips that combine Intel processors with Nvidia RTX GPU chiplets for PCs.
As reported by Tom’s Hardware, Nvidia chief executive Jensen Huang said during a joint press conference with Intel the collaboration had been under discussion for a while.
“The two technology teams have been discussing and architecting solutions now for probably coming out to a year,” he said.
“The two architecture teams… Well, it is three architecture teams are working across… the CPU architecture, as well as product lines for server and PCs. The architecture work is fairly extensive, and the teams are really excited about the new architecture. The teams have been working for a while and we are excited about the announcement today.”
Huang dismissed suggestions that politics influenced the partnership.
“The Trump administration had had no involvement in this partnership at all,” he said, before adding, “They would have been very supportive, of course. Today I had the opportunity to tell Secretary [of Commerce Howard] Lutnick and he was very excited and very supportive of seeing two American technology companies working together.”
Huang also pointed to the scale of potential consumer demand.
“Just the notebook market is 150 million notebooks sold each year,” he said. “So that kind of gives you a sense of the scale of the work that we are going to do here. We are going to address the consumer market, we are going to address a vast majority of that consumer PC market, consumer PC notebook market.”
The partnership spans data center CPUs customized for Nvidia’s AI workloads and client processors pairing Intel’s x86 design with Nvidia RTX GPUs.
Although the products the two firms will be working on are not expected to arrive for several years, the collaboration is already being seen as a huge win for Intel, which has had its share of issues over the past few years, and a turning point in how both companies approach AI and consumer computing.
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waynewilliams@onmail.com (Wayne Williams)
