Chris Morris
Intel stock soared 25% shortly after markets Thursday. Nvidia stock rose about 2%%.
“This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms. Together, we will expand our ecosystems and lay the foundation for the next era of computing,” Nvidia CEO Jensen Huang said in a statement.
Nvidia will buy Intel shares at a price of $23.28, slightly less than the company's closing price on Wednesday, but more than the $20.47 per share the government paid. The deal will require regulatory approvals and will make Nvidia a 4% owner of Intel.
The CEOs of the two companies will hold a news conference Thursday at 1 p.m. E.T. to discuss the deal.
While the companies will work together to develop the new chips, Nvidia has not yet committed to a manufacturing deal with Intel for them. Instead, it will design custom processors for data centers, which Nvidia will sell alongside its AI GPUs. Nvidia will ensure its chips and the Intel chips communicate at higher speeds, which will encourage adoption.
At least one analyst said that while this is certainly a win for Intel, it could be a bigger victory for Nvidia in the long run.
No comments:
Post a Comment