Nvidia takes $5 billion stake in Intel under September agreement

Reuters: Nvidia (NVDA.O), opens new tab has purchased Intel shares worth $5 billion, the American semiconductor firm (INTC.O), opens new tab said in a filing on Monday, carrying out a transaction announced in September.

 

The leading AI chip designer said in September it would pay $23.28 per share for Intel common stock, in a deal that is seen as a major financial lifeline for the chipmaker after years of missteps and capital-intensive production capacity expansions drained its finances.

 

The world's most valuable firm has bought over 214.7 million Intel shares at the price set out in the September agreement, in a private placement, according to Monday's filing.

 

U.S. antitrust agencies had cleared Nvidia's investment in Intel, according to a notice posted by the U.S. Federal Trade Commission earlier in December.

 

Nvidia shares were down 1.3% in premarket trading while Intel stock was little changed.