Nvidia's $5 billion investment in Intel reignites chips rally; AMD slides

Intel's shares INTC.O up 33% in volatile premarket trading after Nvidia NVDA.O says it will invest $5 billion in the chipmaker; Nvidia up 3.5%

Applied Materials AMAT.O, Lam Research LRCX.O, Micron Tech MU.O rise 2.3%-7%

AMD AMD.O shares down 5.5% as investment signals a deepening alliance that could sideline the Intel rival in future data center and PC chip collaborations, while threatening its share in AI-driven workloads

Synopsys up 11% on optimism around chip design demand and its role as a key electronic design automation partner to both Intel and Nvidia

"Nvidia's $5 billion investment in Intel is less about money and more about influence," said Matt Britzman, senior equity analyst at Hargreaves Lansdown

"It's a strategic alliance with geopolitical undertones, deepening cooperation between two U.S. chip giants and putting pressure on rivals like AMD and TSMC."

U.S.-listed shares of TSMC down 1.5% as move raises the possibility of shifting some manufacturing away from the Taiwanese foundry

European Semiconductor peers extend gains: ASML ASML.AS, ASM International ASMI.AS, STMicro STMPA.PA, AIXTRON AIXGn.DE up between 6%-8%

Nvidia, whose must-have chips are powering a global artificial intelligence boom, said in a statement it will pay $23.28 per share for Intel common stock, a price slightly below the $24.90 at which Intel shares closed on Wednesday