Intel Up 24% on $5 Billion Investment from Nvidia

Shares of Intel (NASDAQ: INTC | INTC Price Prediction) are up about 24% or $5.92 this morning.

Plus, not even 20 minutes into the trading day, volume is up to 151.1 million, as compared to its daily average volume of 97 million.

All after Nvidia (NASDAQ: NVDA) said it will invest $5 billion in Intel, as part of a deal to co-develop data center and computer chips, sending the NASDAQ to higher highs.

As noted by NVIDIA founder and CEO Jensen Huang, “AI is powering a new industrial revolution and reinventing every layer of the computing stack — from silicon to systems to software. At the heart of this reinvention is NVIDIA’s CUDA architecture.”

“This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms. Together, we will expand our ecosystems and lay the foundation for the next era of computing,” he added.

This follows two other monster investments from Softbank and the U.S. government.

Softbank Invested $2 Billion in Intel

Earlier this year, Softbank invested $2 billion in Intel.

As noted by CNBC, “The investment, equal to about 2% of Intel, makes SoftBank the fifth-biggest shareholder, according to FactSet. It’s a vote of support for Intel, which hasn’t been able to take advantage of the artificial intelligence boom in advanced semiconductors and has spent heavily to stand up a manufacturing business that’s yet to secure a significant customer.”

Intel and the Trump Administration Reached a Historic Agreement

In August, Intel also announced an $8.9 billion investment from the Trump Administration.

According to Intel, it reflects “the confidence the Administration has in Intel to advance key national priorities and the critically important role the company plays in expanding the domestic semiconductor industry.”

Under the terms of the deal, the government agreed to buy 433.3 million shares of Intel at a price of $20.47 per share, equivalent to a 9.9% stake in the company.