TL;DR
Nvidia has acquired roughly $5 billion worth of Intel common stock under an agreement announced in September, buying just over 214.7 million shares at $23.28 each in a private placement. U.S. antitrust agencies had cleared the investment, and initial market reaction showed Nvidia shares down about 1.3% premarket while Intel was little changed.
What happened
In a filing made public Monday, Nvidia executed the purchase of Intel shares worth $5 billion that it had announced in September. The company paid $23.28 per share and bought slightly more than 214.7 million shares in a private placement, according to the filing. Reuters noted the transaction following a prior announcement in September that specified the per‑share price. U.S. antitrust agencies had previously cleared the investment, a clearance the Federal Trade Commission posted notice of in early December. The deal has been described in reporting as a significant financial infusion for Intel after years of costly production expansion and strategic missteps that strained its finances. In premarket trading around the filing, Nvidia shares were reported down about 1.3%, while Intel’s stock showed little change.
Why it matters
- Provides Intel with a sizable capital infusion after a period of heavy spending and operational challenges.
- Marks a significant equity investment by a major AI‑chip designer into a leading PC and server chipmaker.
- Antitrust clearance removed a regulatory hurdle that could have delayed or altered the transaction.
- Could influence investor and industry perceptions of corporate alliances and capital strategies in the semiconductor sector.
Key facts
- Transaction value: $5 billion.
- Price paid per share: $23.28.
- Shares purchased: just over 214.7 million Intel common shares.
- Structure: private placement, according to the filing.
- Deal first announced in September.
- U.S. antitrust agencies had cleared the investment; FTC posted a notice in December.
- Source noted Intel had faced strained finances after capital‑intensive production expansions and strategic missteps.
- Market reaction in premarket trading showed Nvidia down about 1.3% and Intel little changed.
What to watch next
- Whether Nvidia will seek any governance role, such as board representation, in Intel — not confirmed in the source.
- How Intel plans to deploy the capital from this private placement to address its production and strategic priorities — not confirmed in the source.
- Whether Nvidia will increase, reduce or otherwise alter its stake in the future and how that might affect competition or partnerships — not confirmed in the source.
Quick glossary
- Private placement: The sale of securities directly to a small number of institutional or accredited investors rather than through a public offering.
- Common stock: Shares that represent ownership in a corporation and typically carry voting rights and a claim on residual assets.
- Antitrust clearance: Regulatory approval indicating that a proposed transaction does not violate competition laws or raise unacceptable anticompetitive concerns.
- Premarket trading: Trading activity that occurs on stock exchanges before the official market open, often used as an early indicator of investor reaction.
Reader FAQ
How much did Nvidia pay for Intel shares?
Nvidia paid $23.28 per share, totaling about $5 billion.
How many Intel shares did Nvidia buy?
The filing states Nvidia bought just over 214.7 million Intel common shares.
Was the deal subject to antitrust review?
Yes. U.S. antitrust agencies had cleared the investment, and the FTC posted a notice in December.
Will Nvidia take control of Intel or a board seat?
Not confirmed in the source.
Nvidia takes $5 billion stake in Intel under September agreement By Reuters December 29, 202512:19 PM UTCUpdated 5 hours ago Nvidia and Intel logos are seen in this illustration taken…
Sources
- Nvidia takes $5B stake in Intel under September agreement
- Nvidia takes $5 billion stake in Intel under September …
- NVDA: Nvidia Takes 4% Stake in Intel With $5 Billion Buyout
- Nvidia Finalizes $5 Billion Purchase of Intel Shares
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