Intel stock jumps 32% after Nvidia’s $5bn investment. Here’s why UK investors are watching INTC closely – and what could happen next.
Intel stock (INTC) just staged its sharpest rally in decades, jumping nearly 32% after Nvidia confirmed a $5 billion investment to co-develop chips. But is this a turning point for Intel – or just market hype?
Why Intel’s News Has Shocked the Market
Intel’s stock had been in freefall for years, hitting its lowest point in over a decade. Suddenly, Nvidia – its fiercest rival – has stepped in with a $5bn stake at $23.28 per share. The deal includes joint work on data centre CPUs and PC chips, combining Nvidia’s AI expertise with Intel’s x86 ecosystem.
In Wall Street terms, Intel just had its best day since 1987. UK traders watching FTSE tech plays will know this could ripple through global markets, especially with AMD and Nvidia already hot picks for growth portfolios.
What This Means for the Future of Chips
Nvidia CEO Jensen Huang called the collaboration “the foundation for the next era of computing.” Intel will build CPUs for Nvidia’s AI platforms and even roll out new PC chips blending its processors with Nvidia’s RTX graphics.
For UK consumers, this could mean laptops and gaming PCs with faster, AI-powered performance hitting shelves sooner than expected. The bigger unknown? Whether Nvidia will actually manufacture chips using Intel’s foundries – a move that could change the semiconductor industry overnight.
Is Intel Stock a Buy Now?
With shares back above $32, early investors are already seeing gains. But analysts warn this might be “token cooperation” unless deeper collaboration follows. For UK investors, the key is whether Intel can turn short-term buzz into long-term growth.
Bottom line: Intel’s comeback story is suddenly back on the table. Would you back INTC now, or stick with Nvidia and AMD?