Analyst on Intel (INTC): $5 Billion Nvidia Investment ‘No Big Deal’

Published on October 1, 2025 at 4:46 pm by Fahad Saleem in News

We recently published 10 AI Analyst Calls You Should Pay Attention To. INTC is one of the stocks analysts were recently talking about.

Christopher Danely, Citi semiconductor analyst, explained in a recent program on CNBC why he downgraded Intel to sell. The analyst said Nvidia’s $5 billion investment in Intel Corp (NASDAQ:INTC) is “no big deal” and is not enough to “move the needle” for the stock. Here is how the analyst explained his reason:

“Obviously, there’s a lot of political pressure going on with various parts of the market right now. I think that has to be somewhat of a factor, but as far as Nvidia goes, it’s no skin off their back. So, they gave Intel $5 billion. They’re down to their last $67 billion in cash. I don’t think that’s a big deal. They already have some products called Grace that offer an ARM core. So now they’re offering an Intel core with that and then they’re going to loan their graphics capabilities out to Intel to let Intel integrate the graphics in their own laptop chip. So for us, the $5 billion is no big deal. Intel is still behind AMD in terms of processors and if you have a better graphics chip it doesn’t necessarily help the actual core processor. Then on the AI product offering, that might end up being 500 million, a billion, maybe two billion at best to Intel, but that’s years out. Intel’s a $53 billion company, so again not enough to move the needle, and more importantly we think this continues to keep Intel in this perpetually money-losing foundry business, which we think they should get out of. If they did get out of that, i.e., making chips for other companies, we think that unlocks a dollar to $2 in earnings power and we’re loving that. But this sounds like this is just going to keep them in this perpetual cycle of trying to make chips for other companies.”

Last month, Nvidia said it would invest $5 billion in Intel to co-develop data center and PC chips. Nvidia and Intel will partner to make artificial intelligence systems for data centers that combine Intel’s x86-based central processors with Nvidia’s GPUs.