What Happened?
Shares of leading designer of graphics chips Nvidia (NASDAQ: NVDA) jumped 3.2% in the morning session after the company announced a landmark $5 billion investment and partnership with rival chipmaker Intel.
As part of the pact, Nvidia revealed it would purchase Intel's stock at $23.28 a share. The two semiconductor giants also planned to jointly develop custom products and next-generation chip technologies for personal computers and AI-focused data centers. This strategic collaboration marked a significant shift in alliances within the chip industry. The news sent Intel's shares soaring, while shares of competitor AMD, which vies with both companies, slipped on the announcement. The deal was seen as a major strategic move, reinforcing Nvidia's strong position in the AI and data center markets.
After the initial pop the shares cooled down to $175.92, up 3.4% from previous close.
Is now the time to buy Nvidia? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Nvidia’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 21 hours ago when the stock dropped 2.3% as reports surfaced that China's internet regulator banned the country's largest tech companies from purchasing the American firm's artificial intelligence (AI) chips.
The directive from Beijing's Cyberspace Administration of China (CAC) specifically told major firms, including Alibaba and Bytedance, to stop using Nvidia's products. This ban reportedly included a chip model that Nvidia had specifically designed to comply with existing U.S. export rules for the Chinese market.
This development heightened investor concerns about Nvidia's access to one of its key markets, adding to the regulatory pressures the company already faced in the region. The news sent ripples through the market, weighing on the broader technology sector and contributing to a drag on the tech-heavy Nasdaq index.
Nvidia is up 27.2% since the beginning of the year, and at $175.92 per share, it is trading close to its 52-week high of $183.16 from August 2025. Investors who bought $1,000 worth of Nvidia’s shares 5 years ago would now be looking at an investment worth $14,432.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
