Intel (INTC) stock is spiking premarket on news of an unprecedented $5 billion investment from Nvidia (NVDA), establishing a historic collaboration between the two semiconductor giants to develop custom data center and PC products. This partnership strategically combines Nvidia's AI and accelerated computing expertise with Intel's established CPU technologies and x86 ecosystem, potentially strengthening both companies' market positions.

Nvidia is investing in INTC at a price of $23.28 per share, according to a press release, while Intel stock has soared 28% ahead of the open to trade near $32. If those premarket gains hold, INTC will be on pace for its best daily gain of the century.

Today’s explosive move in Intel stock is likely to rock the options market. Ahead of today’s session, speculators were pricing in just a 2.73% move in INTC shares through the end of the week, and the stock has now cleared the gamma-heavy $25 strike.

Nvidia, U.S. Government Both Backstop Intel

This cash infusion from CEO Jensen Huang’s company follows the U.S. government's substantial investment through a 10% equity stake worth $8.9 billion, which has provided additional stability to Intel's operations and demonstrated strong federal support for domestic semiconductor manufacturing. 

In a strategic move to streamline operations, Intel has successfully completed the sale of a 51% stake in its Altera business to Silver Lake for $3.3 billion, enabling the company to reduce its 2025 operating expense forecast to $16.8 billion from $17 billion. Under CEO Lip-Bu Tan's leadership, the company continues its comprehensive restructuring efforts while maintaining its 2026 expense target at $16 billion.

Market response to Intel's strategic initiatives so far has been generally positive, with the stock gaining approximately 24% year-to-date, reflecting growing investor confidence in the company's transformation strategy. 

What’s the Forecast for Intel Stock?

The global semiconductor market is projected to grow from $627 billion in 2024 to $1.03 trillion by 2030, but Intel faces intense competition in the AI chip segment, particularly from established players like Taiwan Semiconductor (TSM), which maintains approximately 67% of the foundry market share. Intel’s position is further complicated by geopolitical tensions, which is especially evident in strained U.S.-China relations and recent Chinese antitrust investigations into U.S. semiconductor companies.

As a result, analysts maintain a cautious stance on Intel's recovery, despite early encouraging signs. Wall Street hasn’t budged from its consensus “Hold” rating over the last several months, and INTC stock is set to open today’s session well above even its Street-high price target of $28.