Nvidia’s $5 billion investment in Intel has created waves across Wall Street. The chip giant’s market value jumped from $4.13 trillion to $4.28 trillion in just one day.
The partnership will see Intel build custom x86 CPUs for Nvidia’s data center platforms. It also includes plans for chips that combine Intel processors with Nvidia RTX GPU chiplets for personal computers.
CEO Jensen Huang revealed the collaboration had been in development for nearly a year. “The two technology teams have been discussing and architecting solutions now for probably coming out to a year,” he said during a joint press conference.
ICYMI: We’re excited to collaborate with @nvidia to develop custom CPUs and x86 RTX SoCs for datacenter and client computing.
Together, we’re unlocking new opportunities in AI and PC innovation – https://t.co/NrGRWetnjk pic.twitter.com/mwxMHVErXi
— Intel (@intel) September 18, 2025
The deal spans both data center and consumer markets. Huang pointed to the massive scale of potential demand in the notebook market alone.
“Just the notebook market is 150 million notebooks sold each year,” he explained. This gives investors a sense of the market opportunity ahead.
William Blair analyst Sebastien Naji maintained his Buy rating on Nvidia stock. He views the Intel partnership as a win for both companies.
The analyst believes the deal provides Nvidia with “incremental revenue opportunities.” This comes during an already strong demand period for NVL72 racks.
Naji noted that Intel gains a new customer in the data center market. The partnership also provides funding for Intel’s foundry goals.
For Nvidia, the deal expands access to the large x86 ecosystem. It also enhances the company’s potential in the integrated GPU PC market.
The partnership boosts Nvidia’s total addressable market by roughly $50 billion according to CEO Huang. This expansion puts additional pressure on rival Advanced Micro Devices.
IDC projects about 220 million AI PC shipments in 2028 using x86 architecture. This represents a massive incremental market opportunity for Nvidia.
Naji expects Nvidia to sustain robust growth backed by hyperscaler spending. The company also benefits from accelerating momentum from neocloud, sovereign, and enterprise customers.
“We remain constructive on shares as Nvidia maintains its competitive edge,” the analyst stated. He cited continued benefits from robust AI infrastructure momentum.
The investment reflects confidence in long-term market trends. Both companies see the partnership as addressing future computing needs.
Huang dismissed any political influence on the deal. “The Trump administration had had no involvement in this partnership at all,” he clarified.
Products from the collaboration are not expected to arrive for several years. However, investors are already pricing in the potential benefits.
The partnership represents a turning point for both companies’ approaches to AI and consumer computing. Intel gets much-needed support while Nvidia expands its market reach.
Wall Street maintains a Strong Buy consensus on Nvidia stock based on 35 Buy ratings. The average price target of $211.69 suggests 20% upside potential from current levels.
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