- Nvidia Market Value Hops $ 150 MIA
- The company’s $ 5 billion. Intel -Investing dwarfed by $ 150 billion Surge in own valuation
- Partnership focuses on custom x86 CPUs for AI platforms and consumer processor
Nvidia’s market value jumped with about $ 150 billion after the surprise news of a sweeping partnership with Intel.
To put things in context, this gain is greater than Intel’s entire market value.
Nvidia’s value rose from about $ 4.13 trillion on September 17 to $ 4.28 trillion a day later. The wave in Nvidia’s market value was about 30 times the size of its $ 5 billion investment in the Intel share (to $ 23.28 per share).
A Trump-free deal
The sharp increase reflected the investor’s confidence in the agreement, which will see Intel build custom X86 CPUs for Nvidia’s data center platforms, while also producing chips that combine Intel processors with NVIDIA RTX GPU chiplets for PCs.
As reported by Toms HardwareNvidia -Managing Director Jensen Huang said during a joint press conference with Intel that the collaboration had been under discussion for a while.
“The two technology teams have discussed and architecting solutions now to probably come out to a year,” he said.
“The two architecture teams … Yes, these are three architecture teams work across … The CPU architecture as well as product lines for server and PCs. The architecture work is quite extensive and the teams are really excited about the new architecture. The teams have been working for a while and we are excited about the announcement today.”
Huang rejected proposals that politics affected the partnership.
“The Trump administration had not had any commitment to this partnership at all,” he said, before adding, “of course they would have been very supportive. Today I had the opportunity to tell secretary [of Commerce Howard] Lutnick and he were very excited and supported a lot to see two American technology companies work together. “
Huang also pointed to the extent of potential consumer demand.
“Just the notebook market is 150 million notebooks sold every year,” he said. “So that kind of gives you a sense of the extent of the work we need to do here. We will address the consumer market, we will tackle a large majority of the consumer PC market, consumer PC Notebook Market.”
The partnership spans data center CPUs adapted to Nvidia’s AI workload and client processors pairing Intels X86 -Design with NVIDIA RTX GPUs.
Although the products that the two companies will work on are not expected to arrive for several years, the collaboration is already seen as a huge victory for Intel that has had its share of questions over the past few years and a turning point in how both companies are approaching AI and consumer computing.
