TLDR
- NVDA closed at $170.29, down 2.6%, then rose 2.75% in pre-market trading.
- Nvidia to invest $5B in Intel at $23.28 per share.
- Deal covers custom CPUs for data centers and PC chips.
- China regulators ban local firms from buying some Nvidia AI chips.
- NVDA up 26.8% YTD, but faces mounting geopolitical risks.
Nvidia Corporation ($NVDA) stock fell 2.6% to $170.29 on September 17, 2025, before gaining 2.75% to $174.96 in pre-market trading.
The decline followed reports that China ordered its firms to stop buying certain Nvidia chips, though sentiment improved after the company announced a $5 billion investment in rival Intel.
NVIDIA-Intel Strategic Deal
Nvidia confirmed it would purchase $5 billion worth of Intel shares at $23.28 each. The investment aims to support co-development of chips for both data centers and PCs, marking a major collaboration between the longtime rivals.
CEO Jensen Huang described the deal as a “historic collaboration” uniting Nvidia’s dominance in GPUs for AI with Intel’s general-purpose processors. Under the agreement, Intel will supply custom CPUs that Nvidia can integrate into its AI platforms. Another project will target the PC chip market, signaling an effort to broaden Nvidia’s product reach.
Intel shares surged 29% on the announcement, climbing to $31.97 in pre-market trading. Nvidia’s stock also rebounded 3% after news of the partnership.
U.S. Backing and Industry Implications
The deal follows a U.S. government move last month to acquire a 10% stake in Intel, part of efforts to strengthen domestic chip production. This alignment suggests Washington’s support for Intel’s survival as a key manufacturing player in semiconductors.
The collaboration represents a shift in industry dynamics as Nvidia leverages Intel’s CPU expertise while avoiding direct reliance on Intel’s foundry for GPU manufacturing. Shares of Arm, Nvidia’s current CPU partner, slipped 5% on the news.
China Headwinds
Despite the partnership, Nvidia faces headwinds in China. Regulators there have reportedly directed companies like ByteDance and Alibaba to stop ordering its RTX Pro 6000D chips. The decision reflects Beijing’s push to reduce reliance on U.S. semiconductors while fostering domestic alternatives.
Huang acknowledged the growing geopolitical rift, saying Nvidia could only serve markets where governments permit. He expressed disappointment but also patience, noting broader trade agendas between the U.S. and China.
Performance Overview
Nvidia remains one of the best-performing U.S. stocks over the past three years. As of September 17, NVDA is up 26.8% year to date, with a one-year return of 47.4%. Over three years, the stock surged more than 1,190%, and nearly 1,270% across five years, far outpacing the S&P 500.
While geopolitical uncertainty weighs on near-term sentiment, Nvidia’s long-term growth outlook remains anchored in its leadership of AI infrastructure and strategic alliances like the new Intel deal.
