To The Moon

On Thu, 18 Sep 2025 $NVIDIA(NVDA)$ announced that it has invested $5 billion to acquire around a 4% ownership stake in $Intel(INTC)$.

At the same time, they announced a strategic partnership to co-develop AI infrastructure and PC chips, with NVDA showing strong confidence in INTC's role in the future of computing.

It was also revealed that the 2 companies held discussions for nearly a year, on this investment cum collaboration tie-up.

Really A Win (for INTC) ?

Based on overall media consensus, the $5 billion injection has been widely regarded as a significant win for Intel.

Firstly, the strategic partnership marks a major endorsement of Intel’s turnaround by the AI and GPU market leader.

6 Key Reasons Why It Is A Win :

• NVDA bought a substantial 4%+ stake in INTC at a premium price, showing strong confidence in INTC’s strategy and technology.

• INTC will leverage its x86 CPU design expertise to build custom chips integrated with NVDA’s GPUs for AI data centers and PCs, positioning Intel at the heart of the AI computing boom.

• The alliance validates Intel’s manufacturing capabilities, especially in proven process nodes initially, reducing risk and paving the way for future advanced node collaboration.

• NVDA benefits by securing access to INTC’s US-based manufacturing capacity and combining CPU-GPU strengths, while Intel gains new credibility as a supplier in AI infrastructure.

• The collaboration also extends to new PC chips combining NVDA RTX graphics and INTC CPUs with NVDA’s NVLink for high-speed communication, aiming to redefine gaming and AI-powered PCs.

My viewpoints: (mine only)

On the surface, it does indeed look like a winning formula for INTC (at least for now) when the company is really in a state of distress as a result of years of mismanagement by a string of ex-CEOs.

But dig deeper, the collaboration is aiding NVDA to become a monopoly in the chip industry.

How so ?

The new chip collaboration between INTC’s CPU and NVDA’s GPU via NVDA’s NVLink will embed NVDA presence into INTC’s CPU design (it’s DNA).

Over time, INTC will be so tightly coupled with NVDA that any attempt to walk away (from NVDA) will be demise only.

It is not a 50-50% relationship, NVDA just has that slight edge over INTC due to its investor’s stance - don’t you agree.

If the new chip proved to be successful in bringing faster responses in computer hardware (notebooks and PCs), will it lead to falling demand (sales) for $Advanced Micro Devices(AMD)$ chips, INTC’s main competitor?

NVDA - World Dominance ?

NVDA is already the undisputed leader when it comes to all things AI-related.

Should its recent investment in INTC and $100 billion partnership with OpenAI, raise concerns about potential monopoly power in the IT and AI sectors.

Let’s not forget NVDA’s endeavour in the quantum space is gathering pace, with the company setting up a quantum research centre in Boston. (see below)

It wasn’t too long ago, in early January 2025, at the 2025’s Consumer Electronics Show that Jensen Huang (NVDA’s CEO) casually remarked that practical, “useful” quantum computers are about 20 years away.

A remark that he has since backpedaled during NVDA's GTC Paris conference in June 2025.

INTC’s Lifeline.

Any which way one looks at the whole situation, INTC has zero options but to accept the collaboration.

• Its foundry services are heavily under utilized.

• Its CPU chip sales is slowing being chipped away by AMD.

• Its has been sidelined by NVDA in the AI-race ages ago due to its late and failed entrance.

As far as the eyes can see, it was a sinking ship that has to accept the lifeline extended by NVDA, even if it means helping to fortify the latter’s position.

The injected funds provided the needed boost for INTC to attempt another go at íts less than 2nm chip.

That’s the price to pay in order to survive in the cutthroat semiconductor industry.

INTC Stock Movements.

• So far, investors have reacted positively to the news.

• In the short span of approximately one week, INTC’s stock soared over +34.5% (as of 25 Sep 2025 closing) on large volume and analyst upgrades supporting a strong growth narrative.

• Will it be able to hit the $50 mark, last achieved on 29 Dec 2023 ?

Personally, I will (a) pun on INTC to see how far it could go and (b) long on NVDA due to its monopolistic positioning. It looks like a sure-win (?) ; san government interference.

Remember to check out my other posts. (See below). Help to Repost ok, Thanks.

Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks.

• Will US Market Crash Due To Govt Shutdown? Mon, 29 September. Pick post.

• VRT is still a "Cool" Buy, Citibank says ! Wed, 24 September. Pick post.

• BBAI Breakout with Goldman Sachs' Buy ? Tue, 23 September. Pick post.

• Fed's Cut Started, Here's 3 Stocks to Buy ! Tue, 23 September. Pick post.

• Do you think US economy is weakening month by month ?

• Do you think a weaker US economy will affect US stock market or it will not ?

If you find this post interesting, give it wings! ️ Repost and share the insights ?

Do consider “Follow me” and get firsthand read of my daily new post. Thank you.

@Daily_Discussion

@TigerPM

@TigerStars

@Tiger_SG

@TigerEvents