Since 2021, Intel stock lost around 50% of its value. Nvidia shares, meanwhile, gained more than 1,000%.The AI market is expected to grow by 30% or more per year for decades to come. With early investment, Nvidia was able to dominate this huge growth market, which demands parallel processors designed to run thousands of simultaneous operations over more general-purpose processors that Intel produces. Last month, the U.S. government formally took a 10% stake in Intel (INTC -0.93%). This month, Nvidia (NVDA 0.81%) is joining the fray, taking a roughly 4% stake in the company following a $5 billion investment. The deal surprised many investors given Nvidia has amassed such a dominant lead in key growth areas like artificial intelligence (AI). And notably, the $5 billion price tag is relative chump change for Nvidia. That figure represents just 0.1% of Nvidia’s current market cap. But when you dig deeper, the partnership between Intel and Nvidia makes a lot of sense. In fact, there are two promising reasons the deal could help solidify Nvidia’s leading market share for AI chips. What is your take on Nvidia’s trying to extend its dominance ?
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