Intel Completes $5 Billion Private Share Sale to Nvidia in Strategic Equity Deal

Intel (NASDAQ: INTC) has completed a $5 billion private share sale to Nvidia (NASDAQ: NVDA), finalizing a strategic equity transaction first announced in September that gives Nvidia a roughly 4% ownership stake in its longtime semiconductor rival.

Under the terms of the agreement, Intel issued approximately 214.8 million shares of common stock to Nvidia at $23.28 per share, according to regulatory filings released Monday. The shares were sold through a private placement under the Section 4(a)(2) exemption, allowing Intel to raise capital without a public offering.

The transaction provides Intel with a significant financial injection as the company continues a broad restructuring effort and invests heavily in its capital-intensive manufacturing and foundry expansion. Years of aggressive spending on production capacity and process technology have strained Intel’s balance sheet, making the Nvidia investment a key source of funding. Investors have viewed the deal as a vote of confidence in Intel’s strategic reset under Chief Executive Lip-Bu Tan, as the company works to regain competitiveness in advanced manufacturing and artificial intelligence-related chip production.

U.S. antitrust agencies cleared Nvidia’s investment earlier this month, according to a notice posted by the Federal Trade Commission, removing a major hurdle for the transaction. Despite competing in several semiconductor markets, the equity purchase marks one of the largest cross-shareholdings in the industry.

While the deal does not include operational control or board representation, it gives Nvidia financial exposure to Intel’s turnaround efforts and long-term manufacturing ambitions. Market participants are expected to closely monitor Intel’s upcoming earnings reports for details on how the proceeds will be deployed and whether further balance-sheet adjustments are planned.The investment comes as competition in AI-related computing intensifies, with companies racing to secure manufacturing capacity and advanced process technology. Analysts say the capital raised could support Intel’s push to scale its foundry services and accelerate innovation in next-generation chipmaking.

About Intel

Intel Corporation (NASDAQ: INTC) is a global semiconductor company that designs and manufactures processors, platforms, and related technologies for data centers, personal computing, and emerging AI workloads. The company is undergoing a strategic transformation focused on rebuilding manufacturing leadership and expanding its foundry services business.

About Nvidia

Nvidia Corporation (NASDAQ: NVDA) is a leading designer of graphics processing units and accelerated computing platforms used in artificial intelligence, data centers, gaming, and autonomous systems. The company is one of the most valuable technology firms globally and plays a central role in the AI hardware ecosystem.

At the time of publishing, Stocks.News holds positions in Intel as mentioned in the article.