Nvidia invests $5 billion in Intel and reaches a chip collaboration

ChainCatcher news, NVIDIA (NVDA.O) announced on Thursday that it will invest $5 billion in Intel (INTC.O) to support the struggling U.S. chipmaker, but did not grant Intel key chip manufacturing orders.

The agreement also includes plans for Intel and NVIDIA to jointly develop chips for personal computers and data centers, which could pose a potential risk to TSMC (TSM.N).

Currently, TSMC is responsible for producing NVIDIA's flagship processors; as the world's most valuable company, NVIDIA may potentially shift this part of the business to Intel in the future. Meanwhile, AMD, which competes with Intel in the data center chip supply sector, may also suffer losses due to NVIDIA's support for Intel.