Intel Corporation (INTC) wrapped up a major capital infusion Monday, completing the sale of more than 214 million shares to Nvidia Corporation (NVDA) in a $5 billion private placement that's been months in the making.
The transaction closed December 26, following an agreement the two companies signed back in September. Intel issued exactly 214,776,632 shares at $23.28 apiece, generating $5.0 billion in gross proceeds. The shares carry a nominal par value of $0.001 each, and the whole thing was executed under a Securities Purchase Agreement dated September 15, 2025.
A Turnaround Year Taking Shape
The timing matters. This isn't just a random capital raise—it's landing right in the middle of what CEO Lip-Bu Tan has called a "defining year" for Intel. The company is pushing through a significant strategic overhaul aimed at regaining ground in AI chips and advanced manufacturing, two areas where it's been losing competitiveness to rivals.
And so far, investors seem to be buying it. Intel shares are up about 81% year-to-date, a remarkable run for a company that's spent the past few years watching competitors eat its lunch in some of the market's hottest segments.
Tan has pointed to tighter execution, cultural shifts inside the company, and renewed customer confidence as the main drivers behind the rebound. The Nvidia investment gives Intel a stronger balance sheet to execute on those priorities without burning through cash or taking on expensive debt.
More Money in the Pipeline
The Nvidia deal isn't the only capital commitment propping up Intel's reset. The chipmaker has also locked in a separate $2 billion investment from SoftBank Group (SFTBF) (SFTBY), adding to the war chest as it works to catch up in AI infrastructure and chip manufacturing technology.
Between the two deals, Intel has pulled in $7 billion in fresh capital, all without diluting existing shareholders beyond what was agreed to under the private placement structure. That's critical breathing room for a company trying to fund both a technological comeback and a cultural reset at the same time.
Still, the path forward isn't exactly smooth. Intel is navigating ongoing political scrutiny and regulatory challenges as it rebuilds its competitive position, particularly in manufacturing where it's trying to position itself as a credible alternative to Taiwan-based foundries.
Price Action: Intel shares edged down 0.03% to $36.19 in premarket trading Monday. Nvidia shares slipped 1.23%.