The Intel Nvidia Deal, That Could Be a Game Changer

Team Veye | 20-Sep-2025

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Nvidia and Intel struck a partnership to jointly develop and accelerate applications across enterprise, hyperscale, and consumer segments. Intel recorded its highest daily gain since October 1987, surging 22.8% after Nvidia’s intent to invest $5 billion in the struggling U.S. chipmaker.

Intel Corporation (NASDAQ: INTC)

recently entered a big partnership with NVIDIA. As part of this deal NVIDIA is putting up about U$5 billion into Intel. The plan is to build multiple generations of data center CPUs and PC products together by using NVIDIA’s AI and fast computing technology. Intel will also make custom CPUs for NVIDIA’s AI infrastructure and release new x86 system-on-chips that mix Intel CPUs with NVIDIA RTX GPU chiplets for PCs. This deal puts Intel right in the center of the AI race and also helps its balance sheet with new equity money.
For the quarter ending June 28 2025 Intel posted revenue of U$12.86 billion which was almost same as U$12.83 billion last year. But profits are still under stress. Gross profit dropped to U$3.54 billion and Operating income was negative U$3.18 billion Intel had a net loss of U$2.92 billion compared to loss of U$1.61 billion last year for the same period. Even with losses Intel made U$2.86 billion in operating cash flow showing strong cash making ability. It ended the quarter with U$9.7 billion cash and U$11.6 billion short term investments. Debt was about U$44 billion showing why capital discipline is needed. The company also got nearly U$890 million in CHIPS Act grants and U$759 million tax credit for advanced manufacturing in first half of 2025 showing strong government support for its growth plans.
Going forward Intel is working on IDM strategy with big spending on foundries in US and Europe. The sale of majority stake in Altera unit and restructuring steps are to make operations simple and focus on client and data center chips. The NVIDIA deal gives Intel a chance to get back leadership in AI computing especially in custom data center solutions and combined PC platforms. Management is looking at cost cuts along with finishing restructuring by late 2025 and pushing forward advanced processes like Intel 14A.With government help and big tie ups Intel is set to benefit from AI, data centers and this could be a turning point for its long run growth.

(Source: Company Announcements)

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