NVIDIA will invest $5 billion in Intel’s common stock!

[KevinK]

I don't see this as an Intel Foundry endorsement.

Pretty explicit in press conference that this partnership is about end-product, not process or foundry relationship. Mostly about NVLink, and NVIDIA products that will be sold with X86 and Intel products that will be sold with NVIDA chiplet onboard.

 

[blueone]

It could limit Nvidia too, since they want the best server processor to go with their graphics chips, and it is doubtful that is Intel anymore. At least it is possible AMD has pulled ahead decisively. This JV may increase Nvidia costs compared to go-it-alone.

AMD is a viable datacenter GPU competitor, actually a very good one, and that may have tilted the scales to Intel as the partner.

 

[DanX]

This is huge.

 

[Brady]

AMD is a viable datacenter GPU competitor, actually a very good one, and that may have tilted the scales to Intel as the partner.

It’s definitely to shore up Intel in the x86 DC market to give Nvidia a stronger competitor against AMD’s “fully integrated” product line. Strategic defense/offense by Nvidia, and a huge upside win for Intel CPUs and Intel Foundry packaging business.

Now, where’s the Intel Foundry wafer customers…

 

[siliconbruh999]

Jensen said ARM has limitations that x86 doesn't have. Likely Software and bunch of HW stuff

 

[osnium]

It’s definitely to shore up Intel in the x86 DC market to give Nvidia a stronger competitor against AMD’s “fully integrated” product line. Strategic defense/offense by Nvidia, and a huge upside win for Intel CPUs and Intel Foundry packaging business.

Now, where’s the Intel Foundry wafer customers…

I would imagine everyone is waiting to see if Panther Lake ramps before committing anything.

 

[tomatoma]

Q&A was the best part:

Jim Cramer from CNBC asked the first Q in the Q&A. Asking about the landscape of the partnership. He asked about Nvidia using Intel Foundry. Jensen deflected. Nvidia will be a large Intel customer and resell x86 chiplets.

The question about Nvidia using Intel Foundry was asked several times!

Jensen:
Trump had no involvement in this deal.
Sang the praises of TSMC when asked about Nvidia using Intel Foundry again.
$25-50B in annual partnership opportunity.
Still committed to Arm.
The investment in Intel is an incredible opportunity.
The investment is linked to the product announcement with a big ROI expected.
Intel has Foveros packaging that will connect Nvidia (TSMC) and Intel made chiplets (TSMC does not do that).

So does this mean that an Nvidia/Intel integrated product is far more likely to use Intel's Foveros?
If Foveros proves effective here, Nvidia may use it in its own standalone products.

 

[Daniel Nenni]

It’s definitely to shore up Intel in the x86 DC market to give Nvidia a stronger competitor against AMD’s “fully integrated” product line. Strategic defense/offense by Nvidia, and a huge upside win for Intel CPUs and Intel Foundry packaging business.

Now, where’s the Intel Foundry wafer customers…

I thought it was a good call and the Q&A was entertaining. The pressure is definitely on for Intel Foundry customers. Just about every question asked that. I'm sure the next investor call will be the same. Lip-Bu Tan already said he would not announce a foundry customer until the ink was dry on the wafer agreement. I hope he holds to that, absolutely. I also hope the fabless customers get the message that Intel Foundry is gaining momentum and if they do not engage they had better have a good reason why.

There is certainly talk inside the semiconductor ecosystem about Intel Foundry customers. From what I have heard several customers are lining up but I do not want get on Lip-Bu's naughty list. I'm sure I will hear more next week at the TSMC event here in Silicon Valley.

The answer I would want to hear from Jensen, next time he is asked about using Intel Foundry would go something like this:

Let me tell you about wafer agreement negotiation, you do not want anything public until the ink is dry otherwise the price may go up.

 

[Daniel Nenni]

So does this mean that an Nvidia/Intel integrated product is far more likely to use Intel's Foveros?
If Foveros proves effective here, Nvidia may use it in its own standalone products.

Jensen said exactly that. Remember, TSMC will not package other foundry die, right now it is TSMC only due to the tight packaging constraints, which I understand completely. Intel packaging has always been open which is an advantage for Intel Foundry, for now.

 

[Daniel Nenni]

It is interesting to see the resulting headlines:

Nvidia's $5B Shock Deal With Intel Sends Wall Street Reeling
Nvidia, Intel Deal Creates Risk for AMD, Arm
Nvidia takes $5 billion stake in Intel, offers chip tech in new lifeline to struggling chipmaker (Reuters of course )
Nvidia is buying a $5 billion stake in Intel
Nvidia to Invest $5 Billion in Intel, Furthering Trump’s Turnaround Plan
US wins from Nvidia-Intel chip deal, says investment strategist
Nvidia, Intel to co-develop “multiple generations” of chips as part of $5 billion deal

Nvidia PR:

NVIDIA and Intel to Develop AI Infrastructure and Personal Computing Products

NVIDIA (NASDAQ: NVDA) and Intel Corporation (NASDAQ: INTC) today announced a collaboration to jointly develop multiple generations of custom data center and PC products that accelerate applications and workloads across hyperscale, enterprise and consumer markets.

nvidianews.nvidia.com

 

[hist78]

It's a positive development--Craig Barret's plan someone mentioned above--but vague. I don't see this as an Intel Foundry endorsement. It may limit Intel graphics products, from integrated to discrete. It most likely will divide Intel Products development efforts between the JV and non-JV, which could mean less competitive Intel Products.

It could limit Nvidia too, since they want the best server processor to go with their graphics chips, and it is doubtful that is Intel anymore. At least it is possible AMD has pulled ahead decisively. This JV may increase Nvidia costs compared to go-it-alone.

Nvidia has its own server offerings and development projects. I don't think Nvidia is thinking Nvidia's own server products are hopeless and decided to use Intel's.