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Nvidia CEO says company has not been asked to buy a stake in Intel

Nvidia CEO says company has not been asked to buy a stake in Intel

  • 19.03.2025 00:00
  • msn.com
  • Keywords: AI, Market Growth

Nvidia CEO Jensen Huang said his company hasn't been approached about buying a stake in Intel, despite reports suggesting TSMC was considering a consortium involving Nvidia, Broadcom, and AMD. He also discussed strong demand for Nvidia's AI chips and reaffirmed plans to produce them in the U.S.

Nvidia NewsNVDAsentiment_dissatisfiedINTCsentiment_neutralMETAsentiment_satisfiedAVGOsentiment_neutral

Estimated market influence

Nvidia

Nvidia

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Nvidia shares fell 3.4% on Tuesday, but rose nearly 2% after the analyst call.

Intel

Intel

Neutralsentiment_neutral
Analyst rating: Neutral

No direct financial impact mentioned, but potential future collaboration with TSMC and others.

Meta Platforms

Meta Platforms

Positivesentiment_satisfied
Analyst rating: Strong buy

Meta is a key customer for Nvidia's chips and plans to spend heavily on AI infrastructure.

TSMC

Neutralsentiment_neutral
Analyst rating: N/A

Potential collaboration with Nvidia, but no direct financial impact mentioned yet.

Broadcom

Broadcom

Neutralsentiment_neutral
Analyst rating: Strong buy

Mentioned as a company approached by TSMC for a potential stake in Intel's joint venture.

Advanced Micro Devices (AMD)

Neutralsentiment_neutral
Analyst rating: N/A

Mentioned alongside Nvidia and Broadcom as companies approached by TSMC.

DeepSeek

Positivesentiment_satisfied
Analyst rating: N/A

Their focus on reasoning AI increases demand for Nvidia chips, benefiting Nvidia's market position.

Context

Analysis and Summary: Nvidia CEO Statement on Intel Stake and Business Insights

Key Facts and Data Points:

  • Nvidia CEO Jensen Huang stated that his company has not been approached about purchasing a stake in Intel as part of a consortium involving TSMC.
  • TSMC had reportedly reached out to Nvidia, Broadcom, and AMD about joining a joint venture to operate Intel's factories.
  • Intel was previously reported to be considering separating its manufacturing operations and handing control to a consortium, potentially backed by U.S. President Donald Trump.

Market Trends and Business Impact:

  • AI Chip Demand: Huang highlighted strong demand for Nvidia's Blackwell chips, with orders from four top cloud service providers totaling 3.6 million units, though this figure excludes orders from Meta Platforms (Facebook's owner) and smaller providers.
  • Meta's Spending: Meta plans to spend up to $65 billion on AI infrastructure this year, a significant portion of which is expected to go toward Nvidia chips.
  • DeepSeek Competition: Huang addressed competition from China's DeepSeek, emphasizing that their focus on reasoning capabilities would increase computation needs, benefiting Nvidia's chip demand.

Competitive Dynamics:

  • Nvidia is positioning itself as a key player in the AI chip market, with Huang reassuring investors about the company's readiness to meet growing demand despite competition.
  • The potential consortium involving TSMC and Intel highlights shifting dynamics in the semiconductor industry, particularly around manufacturing and supply chain control.

Strategic Considerations and Long-Term Effects:

  • Production Shifts: Huang indicated that Nvidia would move production to the U.S. in the long term due to higher tariffs under Trump's policies but provided no specific timeline.
  • TSMC has announced a $100 billion investment in the U.S., including building five new chip facilities, with plans to produce Nvidia's Blackwell chips at its Arizona plant.

Stock Performance:

  • Nvidia shares rose nearly 2% after Huang's analyst call but fell 3.4% on Tuesday as investors remained skeptical about his claims.
  • Intel and Nvidia shares were flat in after-hours trading following Huang's remarks.

This analysis underscores the strategic shifts in the semiconductor industry, driven by AI demand, geopolitical considerations, and manufacturing realignment.