Nvidia stock recovered on Thursday after a sharp decline in the previous session, as investors reacted positively to a $5 billion investment in rival Intel Corp. and awaited further clarity on US-China trade relations.
Shares of Nvidia rose 2% to $175.74 in early trading after falling 2.6% on Wednesday, when reports emerged that China had banned its largest technology firms from buying Nvidia’s artificial-intelligence chips.
Intel stock surged nearly 30% on news of the tie-up.
Despite Thursday’s rebound, Nvidia stock has been volatile this week, falling 4.3% heading into the session.
The stock remains up 27% for the year, outpacing the 15% gain in the Nasdaq Composite over the same period.
Earlier in the week, Bernstein analyst Stacy Rasgon maintained a Buy rating on Nvidia and set a price target of $225.00.
US President Donald Trump highlighted the growing dominance of artificial intelligence during his UK state visit, singling out Nvidia CEO Jensen Huang at a business event held at Chequers, the prime minister’s country residence.
“You’re taking over the world, Jensen, I don’t know what you’re doing here,” Trump said, drawing attention to Nvidia’s outsize role in the AI boom.
The remarks came as Trump and UK Prime Minister Keir Starmer met with top business leaders against the backdrop of multi-billion-dollar AI investment pledges from US tech firms, including Microsoft, Google, OpenAI, Salesforce, and Nvidia.
$5 billion Intel deal
The two Santa Clara, California-based companies announced that Nvidia will invest $5 billion in Intel, acquiring shares at $23.28 each — a 6.5% discount to Wednesday’s close.
Under the agreement, Intel will use Nvidia’s graphics technology in its upcoming PC chips while providing processors for Nvidia’s data centre products.
Neither company provided a timeline for when the first jointly developed chips will be available.
Both emphasised that the collaboration will not alter their broader strategic priorities.
“This historic collaboration tightly couples Nvidia’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms,” Nvidia Chief Executive Officer Jensen Huang said in a statement.
The CEOs of both companies are scheduled to hold a webcast press conference later Thursday to discuss the partnership.
China in focus
The recovery in Nvidia shares comes amid ongoing concerns over its business in China.
CEO Jensen Huang said he was “disappointed” to hear reports that China’s internet regulator ordered major domestic technology companies to halt purchases and cancel existing orders of Nvidia’s AI chips.
He added that “larger agendas” remain between Beijing and Washington.
It’s a massive blow given the country accounted for about 13% of the company’s sales last year.
With the restriction in place, Nvidia has reportedly instructed suppliers to halt production of the affected chips destined for China.
The move underscores how the escalating global tech rivalry is making it increasingly difficult for Nvidia to maintain its foothold in one of its most important markets.
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