Nvidia invests $5B in Intel for data center chips

$INTC: Intel's Q3 beat expectations, marking the fourth consecutive quarter of improved execution. Revenue hit $13.7 billion, with non-GAAP gross margin at 40%—four points above guidance. The company is optimistic about AI driving growth, highlighting its x86 architecture and partnership with NVIDIA. However, Q4 guidance disappointed: revenue projected at $12.8 to $13.8 billion—a miss versus the $13.37 billion consensus—and adjusted EPS at $0.08, below the $0.09 estimate. Intel Foundry Services is making strides with Intel 18A and engaging potential customers for Intel 14A. Fab 52 in Arizona is fully operational. The company is experiencing capacity constraints on Intel 10 and 7, expected to last into 2026. Despite supply challenges, Intel secured roughly $20 billion through strategic partnerships and asset monetization, ending Q3 with $30.9 billion in cash. They repaid $4.3 billion in debt and are prioritizing deleveraging. 2025 gross capital investment is anticipated to be approximately $18 billion.

Intel shares surged following the company’s strongest earnings since 2023, driven by aggressive cost-cutting measures and significant investments in AI technology. 🤖 The semiconductor giant reported higher-than-expected revenue, boosted by growing demand for AI chips. Analysts view Intel’s strategic focus on AI as key to regaining market share against rivals like Nvidia. This financial milestone signals a robust turnaround amid an increasingly AI-driven semiconductor landscape.

A year ago, I said Intel was too important to fail and too cheap to pass up. The stock was at a decade low and below its book value for the first time since at least 1990. My analysis showed it was deeply undervalued, resting on two pillars: its strategic importance to the US and the early steps of a turnaround plan. Those who followed that call are now sitting on a near-70% return. But a lot has happened since then. After a massive rally and a string of blockbuster deals, it's time to reassess. Is there more room to run? Here’s a look at the new landscape for Intel. 💰 Flush With Cash: Intel has raised over $20 billion this year from major deals with Nvidia, SoftBank, Silver Lake, and the US government, bringing its cash pile to a massive $47 billion. 🤝 Game-Changing Partnerships: The collaboration with Nvidia is a huge win, giving Intel a crucial role in building custom CPUs for Nvidia's booming AI data center platforms. Rumors of talks with Apple and AMD add to the intrigue. 🤔 The Foundry Problem: For all the new cash and partners, the core challenge remains. Intel's foundry business still lacks a major external customer to run its expensive plants at full capacity. 💻 A Mixed Product Picture: The PC chip business has stabilized to pre-pandemic norms, but the initial hype around AI PCs has fizzled. The data center division, which has been bleeding market share, now has a lifeline thanks to the Nvidia deal. 🫧 Valuation Concerns: Intel’s forward price-to-earnings (P/E) ratio, based on expected earnings two years from now, sits at 35x – its highest level since the dot-com bubble. For my full take, including an updated valuation and where I think Intel goes next, check out my latest piece on Finimize: https://lnkd.in/e8RBPYgM For reference, here’s my original research piece on Intel a year ago: https://lnkd.in/dfTK28-9 #Intel #Nvidia #TSMC #Investing #StockMarket #Semiconductors #TechStocks #AI

Nvidia achieved a historic moment on Wednesday morning, with its stock price breaking through $210 and its market capitalization surpassing the $5 trillion mark, becoming the first company globally to reach this milestone. This price also far exceeds the previously considered breakout point of $205.76. While this leap itself is remarkable, the time it took Nvidia to grow from $4 trillion to $5 trillion is still shorter than the astonishing speed it took to grow from $2 trillion to $3 trillion at the beginning of last year, when it only took a little over three months. Even more impressive is that Nvidia's current market capitalization exceeds the combined market capitalization of the energy, real estate, and materials sectors in the S&P 500. Within the semiconductor industry, Nvidia's size is almost overwhelming: its total market capitalization exceeds the combined market capitalization of chip giants such as AMD, ARM, ASML, Broadcom, Intel, Lam Research, Micron, Qualcomm, and TSMC. This is not only a revolution in the capital markets, but also a strong pricing expectation of AI dominating the future.

Beleaguered chipmaker Intel, which has fallen badly behind rivals in the race to develop powerful AI chips, reported income of $4.1 billion for the third quarter.

Intel turns a $16B loss → $4B profit. How? Numbers look shiny: $12.9B → $13.7B revenue, $4.1B net income. Secret sauce: foundry. What’s a foundry? It’s Intel Corporation making custom chips for other companies. Each client wants their own specs, schedules, yields, and costs. SoftBank Group Corp. bet $2B, NVIDIA $5B, and the US government $5.7B. But Intel can’t sell this business for the next 5 years. Why? America wants a homegrown foundry capable of supplying chips for AI, defence, and the tech that runs your life. Would you bet your billions on a business that builds chips for everyone else and hopes they like your recipe? #Intel #Semiconductors #FoundryBusiness #ChipEconomy #TechInfrastructure

Trying to Make Sense of the Intel and Nvidia Connection After reading through the details of Intel’s latest move, I’ve been trying to piece together what it really means. Intel looks like it’s rebuilding from the ground up, but this time with clearer intent. Since 2020 they’ve invested over 200 billion dollars into fabs and R&D, working to close the gap with TSMC. Right now, only Intel, TSMC, and Samsung can handle advanced chip manufacturing, which still keeps companies like Nvidia, Apple, and AMD dependent on them for production. Intel’s setup now feels more refined, with the Product group continuing to deliver strong revenue while the Foundry arm evolves from a cost-heavy division into a strategic pillar. Their 18A and 14A process nodes could bring them back into close competition with TSMC, and having most of their operations based in North America reduces their exposure to risks surrounding Taiwan. The recent collaboration with Nvidia and involvement with the US government seem to be part of a wider rebuilding plan. I even noticed some traders on Bitget mentioning that they were trading Intel stock to earn Nvidia shares as rewards, which made me look deeper into how connected these moves might be. Intel’s growing focus on data center chips and AI infrastructure could benefit directly from this partnership, especially with their new custom silicon teams taking shape. If it all links together the way it appears, Intel could be positioning itself as both a strong competitor and a critical enabler for the same companies it once tried to catch. #stock #intel #NVDA

Intel's turnaround efforts appear to be paying off, after the semiconductor giant exceeded Wall Street's expectations and reported a $4.1 billion profit in its third quarter. The struggling chipmaker credited its gains to stronger-than-expected demand for personal computer chips and recent high-profile investments from Nvidia, SoftBank and the U.S. government. The upbeat results follow six consecutive quarterly losses and arrive at a pivotal time as the company attempts to claw back market share from rivals, including Advanced Micro Devices.