According to news on the evening of September 18, Nvidia stated that it wouldIntelThe investment of US$5 billion has injected new strength into the troubled US chip foundry. Just weeks ago, the White House brokered a deal that would give the U.S. government a large stake in the company.

Nvidia's support brings a new turn of events for Intel after years of unsuccessful efforts to turn the storied U.S. manufacturer back into the black. Intel shares soared 30% in premarket trading. The following is a summary of analyst opinions:

Matt Britzman, senior equity analyst at Hargreaves Lansdown

The core of Nvidia's $5 billion investment in Intel is not the capital itself, but the layout of influence. This is another welcome boost, both financially and strategically, for Intel, which is relying on Nvidia to remain competitive. But even with the support of the U.S. government and Nvidia, this has not yet reached a "home run" (referring to complete success) for its foundry business: the business is still difficult to attract the core customers it needs, and to compete with the strong strength of TSMC, the support of core customers is crucial.

For Nvidia, the financial impact of this investment is minimal, but the political benefits are significant: the move is consistent with the direction of U.S. policy.In short, this is a strategic alliance with geopolitical implications rather than a pure balance sheet deal.

Chris Beauchamp, chief market analyst at IG Group in London

It’s impressive to see the stock price move, again after the U.S. government took a stake in Intel, and then Nvidia’s ‘magic’ drove the stock price up again.

This reflects Nvidia's desire to diversify its U.S. investments to some extent while also gaining some goodwill with the U.S. government.

This shows that Nvidia must expand its business scope and also shows Intel's determination to play a more important role in the market.

Ipek Ozkardeskaya, senior analyst at Pictet Bank

"What Intel needs now is a viable model and assurance that customers are interested in its products. Therefore, Nvidia's agreement to invest up to $5 billion and jointly develop PC and data center chips is good news for Intel."

"Intel needs a partner, and for a company whose investors generally question its future and its ability to regain its footing in the AI ​​wave, Nvidia is the best choice."

"For Nvidia, there may be a political background to this decision, as the U.S. government wants these companies to produce chips in the United States, and they also took a stake in Intel to enable it to build the Ohio factory - which will be one of the largest chip manufacturing plants in the United States."

Art Hogan, chief market strategist at B Riley Wealth

"The deal is still subject to regulatory approval and does not mean Nvidia will necessarily produce its current GPUs at Intel's soon-to-be-opened factory. They will likely continue to work with TSMC on production, but this is a step in the right direction for U.S. manufacturing."

Robert Pavlik, senior portfolio manager at Dakota Wealth

"Partnering with Nvidia is a big help [for Intel], just having access to its intellectual property is huge. For a company that has been struggling to develop products needed for artificial intelligence, this is definitely a big boost, helping to stabilize the company and add some credibility to a company that has been questioned for a long time." "It's a good move. Nvidia certainly has the money to do this. So, why not? Why not try to invest and see where it goes?"

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