Street View: Nvidia's $5 billion bet on Intel lopsided in its own favour

Nvidia NVDA.O said on Thursday it would invest $5 billion in Intel INTC.O, throwing its heft behind the struggling U.S. chipmaker just weeks after the White House engineered an extraordinary deal for the federal government to take a massive stake in the company.

INTEL MAY BUILD IT, BUT NVIDIA STANDS TO BENEFIT

Bernstein says Intel seems to be approaching this deal from a position of weakness; it does little to advance its manufacturing narrative, and any resulting products are likely years away
"Their biggest asset obtained from it is probably Jensen's goodwill"

Stifel says Intel's collaboration with NVDA adds momentum to its multi-year recovery, signaling stronger product sales and opening the door to potentially securing NVDA as a future Foundry customer, rather than boosting performance directly

Rosenblatt says current competition in data center architecture is shifting towards scale-up solutions..... this deal could benefit Nvidia

J.P.Morgan says NVDA stands to gain most in this arrangement, as it opens up an entirely new revenue growth channel (iGPU market) and broadens its market opportunity for rack-scale AI systems