Why Nvidia's $5 Billion Stake in Intel Could Extend Its Dominance in AI Chips

Last month, the U.S. government formally took a 10% stake in Intel (NASDAQ: INTC). This month, Nvidia (NASDAQ: NVDA) is joining the fray, taking a roughly 4% stake in the company following a $5 billion investment. The deal surprised many investors given Nvidia has amassed such a dominant lead in key growth areas like artificial intelligence (AI). And notably, the $5 billion price tag is relative chump change for Nvidia. That figure represents just 0.1% of Nvidia's current market cap. But when you dig deeper, the partnership between Intel and Nvidia makes a lot of sense. In fact, there are two promising reasons the deal could help solidify Nvidia's leading market share for AI chips.Let's take a direct look at the details of this partnership, beginning with some comments from Nvidia CEO Jensen Huang to understand what exactly is going on.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool