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Nvidia to Invest $5B in Intel, Develop Data Centers & PCs

19.09.2025 02:17

Drawing from various internet sources, a significant financial development has emerged: Nvidia, a titan in the technology sector recognized as the world's most valuable public company by market capitalization, has declared its intention to allocate $5 billion toward an investment in Intel. This strategic alliance is poised to involve collaborative efforts in the creation of specialized products tailored for data centers and personal computers, a move spurred by the ever-increasing prevalence of artificial intelligence. The announcement coincided with a notable upturn in the value of AI-related cryptocurrency tokens.

In a transaction detailed on Thursday, the Santa Clara, California-based manufacturer, renowned for its foundational role in artificial intelligence computing through its graphics processing units (GPUs), will acquire Intel shares at $23.28 apiece. This purchase price represents a discount of 6.5% compared to Intel's closing price of $24.90 on Wednesday. The surge in AI crypto tokens was palpable, with NEAR, the leading AI token by market cap, reaching a month-long peak of over $2.95, marking a gain exceeding 10% within a 24-hour period. Further demonstrating this trend, TAO saw an advancement of 5.75% and FET experienced a 6.75% increase, both outperforming the general cryptocurrency market. For context, the CoinDesk 20 Index itself appreciated by 3.41%.

Historically, while Nvidia has cemented its reputation through GPU innovation, Intel once held the undisputed leadership in microprocessor development, becoming synonymous with the central processing units (CPUs) that powered the early wave of IBM-compatible personal computers. However, the company's trajectory has experienced a downturn as the computationally intensive demands of artificial intelligence have gained prominence. Despite this, Intel's stock experienced a remarkable surge of 24% on Thursday, elevating its market capitalization to $143 billion. This figure, however, pales in comparison to the $500 billion valuation it commanded at the turn of the millennium, according to data from companiesmarketcap.com. In contrast, Nvidia's valuation stood at $4.23 trillion, with its stock climbing 1.85% during the same period.

Adding another layer to this narrative, the U.S. government recently acquired a 10% stake in Intel for $8.9 billion, a move widely interpreted as a concerted effort to bolster the future of domestic chip manufacturing. The cryptocurrency ecosystem, in turn, closely monitors Nvidia's financial performance as a significant indicator of broader market sentiment, which can subsequently influence the performance of AI tokens and the wider cryptocurrency market. This report has been updated to incorporate the performance of AI crypto tokens, as detailed in the third paragraph.