Nvidia Purchases $5 Billion Worth of Intel Shares
Dec 29 (Reuters) – Nvidia (NVDA) has purchased Intel (INTC) shares worth $5 billion, the American semiconductor firm said in a filing on Monday, carrying out a transaction announced in September.
The leading AI chip designer said in September it would pay $23.28 per share for Intel common stock, in a deal that is seen as a major financial lifeline for the chipmaker after years of missteps and capital intensive production capacity expansions drained its finances.
The world’s most valuable firm has bought over 214.7 million Intel shares at the price set out in the September agreement, in a private placement, according to Monday’s filing.
U.S. antitrust agencies had cleared Nvidia’s investment in Intel, according to a notice posted by the U.S. Federal Trade Commission earlier in December.
Nvidia shares were down 1.3% in premarket trading while Intel stock was little changed.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Anil D’Silva)
Nvidia has finalized the purchase of $5 billion worth of Intel shares, as announced in September. The American semiconductor firm agreed to pay $23.28 per share for Intel common stock, providing a much-needed financial boost to Intel after facing challenges in recent years.
The transaction involved Nvidia acquiring over 214.7 million Intel shares through a private placement, according to the filing submitted on Monday. This investment has been approved by U.S. antitrust agencies, including the Federal Trade Commission, further solidifying the deal between the two tech giants.
Following the news, Nvidia shares experienced a slight decrease of 1.3% in premarket trading, while Intel stock remained relatively stable. The market reaction reflects the significance of this acquisition and its potential impact on the semiconductor industry.
This strategic move by Nvidia is expected to enhance its position in the market and drive innovation in AI chip design. As the industry continues to evolve, partnerships and investments like these play a crucial role in shaping the future of technology.
