Intel (INTC) has risen like a phoenix from the ashes of its own mismanagement, its stock price flaring upward after Nvidia (NVDA) pledged $5 billion in what might be a desperate handhold. Yet the flame of optimism, so briefly kindled, casts long shadows. The shares, now up 50% this year, gleam with the polish of a newly waxed car-bright, but perhaps only until the next rain.
The market’s applause for this union is loud, but it echoes in a hall where the walls are thin. One might wonder: Is this a marriage of equals, or a landlord leasing space to a tenant who still owes rent? The partnership, aimed at Advanced Micro Devices (AMD), feels less like a grand strategy and more like two weary boxers agreeing to hold hands before the referee counts to ten.
Why Nvidia is partnering with Intel
The collaboration, ostensibly to counter AMD’s encroachment, reads like a script penned by a playwright who forgot the punchline. AMD’s CPUs have nibbled at Intel’s territory, while its fused GPUs and CPUs threaten Nvidia’s gaming crown. But in the realm of artificial intelligence, AMD remains a ghost at the feast. Nvidia, ever the opportunist, seeks to guard its data center empire, yet its alliance with Intel feels less like a fortress and more like a hastily patched tent in a storm.
The plan-to marry Intel’s CPUs with Nvidia’s GPUs via NVLink-promises laptops with the vigor of a young colt. Yet one cannot help but recall Intel’s recent stumbles: delayed products, abandoned projects, and a foundry business hemorrhaging cash. The $5 billion from Nvidia, a mere trinket for the latter, is a lifeline for the former. Paired with $9 billion from the U.S. government and $2 billion from SoftBank, it becomes a temporary reprieve rather than a cure.
Nvidia’s investment whispers that Intel is too big to fail, yet the company’s reliance on Taiwan Semiconductor Manufacturing remains unshaken. Intel’s foundry business, a money pit, lacks the finesse of TSMC’s mastery. The partnership, then, is a dance of mutual desperation-Nvidia needing a CPU ally, Intel needing a patron.
Is Intel’s stock a buy?
The stock’s ascent has been meteoric, yet its foundation remains sand. Intel’s PC division, its old breadwinner, limps forward with a 3% revenue decline. Its data center segment, once a glimmer of hope, grows at a pedestrian 4%, trailing the frenetic pace of Nvidia and AMD. The company’s product roadmap, like a map drawn in a dream, promises much but delivers little.
Nvidia’s pivot to Arm Holdings for CPUs suggests the partnership with Intel is not a finale but a detour. Meanwhile, Intel’s foundry business, a drain on resources, remains a question mark. The $16 billion war chest is a bandage, not a solution. The market, ever fickle, may yet turn when the bandage unravels.
For now, the stock trades above its bargain-bin price. Yet chasing a rally feels like chasing a mirage in a desert-exhausting and futile. The skeptics, with their coffee-stained charts and weary eyes, remain unmoved. The market, in its eternal rhythm, will move on, with or without Intel.
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2025-09-22 22:13