Nvidia’s $5 billion Intel stock purchase is already worth $7.58 billion, turning the recently approved bailout of its rival into a shrewd financial play.Nvidia had locked in a purchase price of $23.28 per share for Intel when Nvidia CEO Jensen Huang and Intel CEO Lip-Bu Tan struck a deal in September.
The deal had been under scrutiny by the U.S. Federal Trade Commission, which was examining whether Nvidia’s potential 4 percent ownership stake could run afoul of antitrust laws. However, the FTC gave the deal a greenlight on Dec. 18.
The purchase of 214 million shares closed on Dec. 26, according to Intel regulatory filings. Intel shares closed Monday at $36.68. Under the terms of the deal, Nvidia and Intel will jointly develop “multiple generations” of chips for datacenter and PC in a move to capture share across the entire chip customer base from consumer to hyperscale customers.