Nvidia completes the $5 billion Intel share purchase

Nvidia (NVDA) has completed a $5 billion purchase of Intel (INTC) shares, finalizing a transaction announced earlier this year. The AI investment was disclosed in a regulatory filing released on Monday.

The deal follows an agreement reached in September between the two U.S. semiconductor companies. Under the terms, Nvidia agreed to acquire Intel common stock at a fixed price.

Nvidia said it paid $23.28 per share for the stock. The price was set at the time the agreement was announced.

According to the filing, Nvidia purchased more than 214.7 million Intel shares. The transaction was completed through a private placement.

Intel confirmed the purchase in its Monday disclosure. The company said the transaction had been carried out as planned under the September agreement.

The investment had drawn attention at the time it was announced. The deal was widely viewed as providing financial support to Intel, which has faced pressure on its balance sheet after years of strategic missteps and heavy spending on production capacity expansion.

Those investments increased Intel’s capital requirements and strained its finances. The Nvidia transaction was seen as a significant infusion of capital amid those challenges.

The deal required regulatory review in the United States. U.S. antitrust agencies cleared Nvidia’s investment earlier this month.

Approval was disclosed in a notice posted by the Federal Trade Commission. The clearance removed a key condition needed to complete the transaction.

Market reaction was muted following the disclosure. Nvidia shares were down 1.3% in premarket trading on Monday.

Intel stock showed little change in early trading. The filing did not disclose any additional conditions tied to the investment.

Nvidia remains the world’s most valuable company by market capitalization. It is the leading designer of artificial intelligence chips, with products widely used in data centers and advanced computing systems.

Intel is one of the largest U.S. chipmakers, with operations spanning chip design and manufacturing. The company has been investing heavily to expand its production footprint in recent years.