NVIDIA's $5 billion investment in Intel: reshuffling of the chip industry supply chain

【CryptoBite】Another big move. The latest filing from the U.S. Securities and Exchange Commission reveals a major deal—Intel sold 214.8 million shares to Nvidia, totaling $5 billion.

Interestingly, this transaction is actually based on a securities purchase agreement signed on September 15 last year. By September 18 this year, Nvidia officially announced the investment, injecting $5 billion into struggling Intel. But here’s a detail—Nvidia did not place a direct order with Intel to manufacture chips. However, the agreement between the two companies includes a joint development plan involving collaboration on personal computer and data center chips.

The industry impact is quite significant. Currently, TSMC remains the main foundry for Nvidia’s flagship processors. As the most valuable company globally, could Nvidia potentially shift this business to Intel? That question is beginning to surface. Meanwhile, AMD, a competitor to Intel in the data center chip field, might also be affected by this strategic shift. The balance of power in the entire chip ecosystem seems to be quietly tilting.