Nvidia on Thursday said it will invest US$5 billion in Intel, throwing its heft behind the struggling US chip foundry, but stopped short of giving Intel a crucial manufacturing deal.
The pact, which also includes a plan for Intel and Nvidia to jointly develop PC and data centre chips, represents a potential risk to Taiwan’s TSMC.
TSMC currently manufactures Nvidia’s flagship processors, business that the world’s most valuable company could one day extend to Intel. AMD, which competes with Intel for supplying chips to data centres, also stands to lose thanks to Nvidia’s backing.
Shares of Intel surged more than 32% in premarket trading, while Nvidia was up more than 3%. AMD slipped nearly 4%, while US-listed shares of TSMC slid 2%.
Nvidia, whose must-have chips are powering a global artificial…