Nvidia Becoming One of Intel’s Largest Shareholders has Mixed Implications for Asian Chipmakers

Nvidia’s $5 billion investment in Intel, giving it a 4% stake and a partnership to develop PC and data center chips, is seen as both a relief and a threat to Asian chipmakers. Analysts say an Intel revival could ease U.S. pressure on foreign rivals, such as TSMC and Samsung, by diversifying Washington’s support base. Still, in the longer term, Intel may emerge as a stronger competitor. Intel shares surged 23% on the news, while TSMC fell 1.6% and Samsung dropped 1%. The deal could also impact AMD, as Nvidia aligns with Intel against a common rival. While some expect Intel’s foundry business to grow, analysts stress it remains far behind TSMC’s cutting-edge manufacturing capabilities.

Reuters, Wen-Yee Lee et al. – Intel’s Nvidia deal expected to be a mixed blessing for Asian chipmakers – 19th September 2025