NASDAQ Rises to Record as Intel Soars More Than 20%, Nvidia Gains 3%

Nvidia to invest five billion dollars in Intel, sending both stocks higher; Intel jumps over twenty-five percent, Nvidia rises three percent; Dow Jones up zero point six percent, S&P five hundred up zero point eight five percent, NASDAQ climbs one point two five percent to record highs.

The New York Stock Exchange opened the day with a positive trend and record highs, led by Intel, which surged following an announcement of a five billion dollar investment from Nvidia.

The Dow Jones Industrial Average gained 0.6%, the S&P 500 advanced 0.85%, and the NASDAQ climbed 1.25%, with the latter two reaching record levels.

Intel soared by 25.4% while Nvidia rose by 3% amid the planned investment.

Nvidia announced it will invest five billion dollars in Intel as part of a joint venture to develop products for data centers and personal computers with the struggling chipmaker, which last month secured the U.S. government as an investor.

Nvidia’s investment is priced at 23.28 dollars per share, according to the company’s statement.

On August 22, the U.S. administration officially announced the purchase of a 10% stake in Intel at a price of 20.47 dollars per share.

“They agreed to do it and I think it’s an excellent deal for them,” President Trump told reporters at the White House following the transaction.

“This is a historic collaboration that closely connects Nvidia’s AI and accelerated computing with Intel’s processors and the broad x86 ecosystem—a merger of two world-class platforms.

Together we will expand our ecosystems and lay the foundation for the next era of computing,” said Nvidia CEO Jensen Huang in a statement.

The investment, still subject to regulatory approval, does not appear to include production of Nvidia chips through Intel’s manufacturing lines.

Huang and Intel CEO Lip-Bu Tan are scheduled to hold a press conference on the deal later today.