Intel (INTC) Draws Strategic Nvidia Investment as Chip Testing Plans Shift

Intel Corporation (NASDAQ:INTC) is one of the Best AI Stocks to Buy under $50. On December 29, Reuters reported that Nvidia has purchased Intel shares worth $5 billion, carrying out a transaction ‌announced in September.

The AI chipmaker had announced back then that it would pay $23.28 per share for Intel ⁠common stock, buying over 214.7 million Intel shares at the price set out in the agreement, as per Monday's filing. The deal forms part of a broader strategic agreement to co-develop chips for data centers and personal computers.

The share purchase comes just a week after Reuters reported that Nvidia Corp. has halted a test to use Intel’s advanced 18A manufacturing process to make advanced chips. The AI chipmaker tested the so-called 18A process but stopped moving forward, the report said.

Investors had been closely watching Intel's advanced 18A as a milestone that could help the company compete more directly with Taiwan Semiconductor Manufacturing Company in advanced chip manufacturing. However, the halt now raises concerns about the company’s ability to regain ground in the foundry race.

Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells computer products and technologies, delivering data storage, computer, networking, and communications platforms.

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