NVIDIA's investment in Intel shocks the market, with the U.S. government emerging as the biggest winner

According to Zhitong Finance APP, the U.S. chip industry experienced significant turbulence on Thursday. NVIDIA (NVDA.US) unexpectedly announced the acquisition of a 5% stake in Intel (INTC.US), drawing considerable attention from Wall Street, while the U.S. government emerged as the biggest winner in this transaction.

According to the latest disclosed data, the U.S. federal government purchased 433 million shares of Intel stock last month at a price of $20.47 per share, with a total investment of approximately $8.9 billion. As of Thursday's close, Intel's stock price surged to a high of $32.38, ultimately closing at $30.57, a single-day increase of 22.77%. This means that in just one month, the government's paper profit has approached 50%, amounting to $4.4 billion, with the market value of its holdings exceeding $13 billion.

NVIDIA's stock price also rose following the announcement, closing up 3.49% at $176.24, which helped lift major U.S. stock indices. The S&P 500 index rose by 0.48%, and the Nasdaq increased by 0.94%.

Gordon Haskett analyst Don Bilson stated, "Although this gain is not as significant as the paper growth from the Department of Defense's investment in rare earth miner MP Materials (MP.US), its significance remains substantial." The Department of Defense had previously purchased approximately 25 million shares of MP Materials at $30 per share in July this year, aiming to secure the supply of rare earth magnets for the U.S. military. This investment has since doubled in value, with paper profits nearing $1 billion.

In recent years, the U.S. government has gradually increased direct investments in key industries, a trend that has left investors feeling quite complex. In the past, the government typically only took stakes in companies facing severe financial difficulties, but this situation is changing.

U.S. Secretary of Commerce Gina Raimondo recently publicly stated that the government should consider directly holding shares in defense contractors, as the Pentagon itself is the largest customer of these companies.

Bilson pointed out in his research report, "For NVIDIA, $5 billion is just a small cost, but it can enhance its relationship with President Trump."

However, he also emphasized that this transaction is far more than just a political factor. "This acquisition is reshaping the entire computer chip industry, and the global economy is also striving to adapt to the significant changes brought about by artificial intelligence."

Industry analysts believe that the wave of artificial intelligence is driving the global chip industry chain into a new round of consolidation. By bringing in the government and NVIDIA as major shareholders, Intel is expected to gain dual protection in terms of capital and market, accelerating research and development and capacity expansion in the AI chip field. NVIDIA, through its investment in Intel, is strengthening its strategic voice in the AI hardware supply chain and may gain policy support