Intel (INTC) Is Up 16.1% After $5 Billion Nvidia Deal and AI Hardware Pact – Has the Bull Case Changed?

• On September 15, 2025, Nvidia announced a US$5 billion equity investment in Intel and revealed a multi-year collaboration to co-develop custom data center and PC products leveraging both companies’ technologies.
• This partnership marks a rare convergence between major competitors, signaling a potential shift in the competitive landscape of AI and data center hardware while providing a strong external endorsement for Intel’s ongoing turnaround efforts.
• We'll explore how Nvidia's investment and collaboration could influence Intel's AI ambitions and reshape its long-term investment outlook.

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Intel Investment Narrative Recap

For Intel shareholders, the big picture centers on belief in the company's ability to transform and capture a leadership position in AI and advanced semiconductors, despite recent years of financial challenges. Nvidia’s US$5 billion investment and collaboration has energized investor sentiment and could accelerate Intel’s AI ambitions, a key short-term catalyst. However, Intel’s long-term manufacturing scalability and its execution on AI remain the most important risks, and it’s not yet clear if this partnership fully addresses those vulnerabilities.

Among Intel's recent announcements, the launch of the Core Ultra 200V series mobile processors stands out, directly linking Intel’s technology roadmap to emerging AI applications. This is especially relevant in the context of Nvidia’s partnership, as success here could bolster competitive positioning in AI-centric markets, the very focus that investors view as central to the turnaround thesis.

By contrast, investors should also be aware of ongoing manufacturing capacity constraints, which could pose...

Read the full narrative on Intel (it's free!)

Intel's outlook anticipates $58.1 billion in revenue and $5.2 billion in earnings by 2028. This is based on a projected annual revenue growth rate of 3.1% and an earnings increase of $25.7 billion from the current $-20.5 billion position.

Uncover how Intel's forecasts yield a $22.18 fair value, a 24% downside to its current price.

Exploring Other Perspectives

Some analysts are far more optimistic, expecting Intel’s annual revenues to reach US$62.1 billion and earnings to hit US$8.7 billion by 2028, viewing the company’s expanded focus on advanced process nodes and the AI opportunity as transformational. These forecasts were made before Nvidia’s headline investment, so it’s useful to consider whether this new partnership will shift the debate on Intel’s future, explore all sides as investor perspectives are anything but uniform.

Explore 44 other fair value estimates on Intel - why the stock might be worth over 2x more than the current price!

Build Your Own Intel Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Intel research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Intel research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Intel's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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