Nvidia acquires $5 billion in Intel and reaches chip cooperation

NVDA.O announced on Thursday that it would invest $5 billion in Intel to support the tough U.S. chip foundry company, but did not grant key chip manufacturing orders to Intel. The agreement also includes plans for Intel and Nvidia to jointly develop personal computers and data center chips, which may pose a potential risk to TSMC (TSM.N). Currently, TSMC is responsible for producing Nvidia's flagship processors; as the world's highest market value company, Nvidia may transfer this part of its business to Intel in the future. Ultramicro semiconductors that compete with Intel in the field of data center chip supply may also suffer losses due to Nvidia's support for Intel.