Shares of Intel Corporation experienced a notable uptick in pre-market trading on Monday, December 29, following the completion of a major financial transaction with its rival, Nvidia Corporation. The chipmaker's stock price moved to $36.29 on the Nasdaq after it confirmed the sale of a substantial block of shares over the previous Friday.
The $5 Billion Strategic Investment
According to an official filing submitted to the US Securities and Exchange Commission (SEC), Intel has finalised the sale of 214.8 million shares of its common stock to Nvidia. The transaction was executed at a price of $23.28 per share, culminating in a total deal value of $5 billion. This move fulfills a commitment made by Nvidia back in September to invest this significant sum into Intel.
The funds from this private placement were transferred in cash, governed by a formal Securities Purchase Agreement. This deal marks one of the most substantial direct stock transfers between two leading giants in the global semiconductor industry, granting Nvidia a considerable stake in Intel.
Fueling the AI Ambition and a Stunning Recovery
The strategic partnership extends beyond mere financial investment. The September agreement outlined a collaborative effort where both companies will co-develop multiple lines of advanced technologies for data centers and personal computers. The core objective of this alliance is to accelerate innovation and capabilities in the field of artificial intelligence (AI).
This deal arrives amidst a powerful resurgence for Intel in the financial markets. The company's shares have staged an impressive comeback throughout 2025, rallying by a staggering 80%. This recovery has propelled the stock from a price of $20.23, effectively erasing the steep 60% decline it suffered during 2024.
Drivers Behind Intel's Turnaround
Several key factors are powering Intel's remarkable financial and operational recovery:
- Major Capital Investments: Significant funding directed towards establishing new manufacturing plants in the United States and Europe.
- Strong Quarterly Growth: The company has reported robust financial performance in recent quarters.
- AI Sector Momentum: Riding the wave of global demand and innovation in artificial intelligence technologies.
The company's improved health was evident in its third-quarter results for 2025. Intel reported a non-GAAP gross profit of $5.45 billion, a sharp increase from $2.39 billion in the same period a year ago. Furthermore, its non-GAAP operating margin expanded dramatically to 40%, up from just 18% previously, surpassing management's guidance by 4%. This improvement is attributed to higher revenues, a more favourable product mix, and reduced inventory reserves.
In another strategic move to bolster its AI portfolio, reports from Bloomberg indicate that Intel is in advanced negotiations to acquire SambaNova Systems, an AI chip startup based in Palo Alto. The potential acquisition, valued at approximately $1.6 billion including debt, could be finalised as early as next month, although terms and timing are still subject to change.
Disclaimer: Investors are advised to consult with certified financial experts before making any investment decisions.
