Turning point of fate, NVIDIA's investment in Intel in 2025 = Microsoft's investment in Apple in 1997?

NVIDIA's strategic investment of up to $5 billion in Intel is sparking intense discussions on Wall Street about a historical repeat. Market observers are comparing this move to Microsoft's rescue of the near-bankrupt Apple in 1997, believing it could mark a turning point for the struggling chip giant Intel.

Recent developments indicate that NVIDIA will become one of Intel's largest shareholders through this investment. According to the cooperation agreement, both parties will jointly develop chips in the personal computer (PC) and data center sectors, aiming to deeply integrate NVIDIA's leading graphics processing units (GPUs) with Intel's central processing units (CPUs) and packaging technology.

For NVIDIA, this is a well-considered strategic layout. For Intel, which is striving to revive its former glory, gaining public endorsement from the new industry leader injects much-needed credibility and momentum into its once-uncertain foundry business.

This move is seen as a key step that could reshape the global semiconductor industry landscape. Although there are still differences in the market regarding whether Intel can replicate Apple's revival miracle, this historic collaboration undoubtedly provides investors with a new perspective to assess Intel's future value and marks the beginning of a "second act" for this old giant.

A Similar Historical Scene: Giants Aid Former Kings

Some analysts believe that Intel's current situation is strikingly similar to Apple's in 1997.

In August 1997, Apple was on the brink of collapse. Market share plummeted, cash flow was severely depleted, and most analysts believed bankruptcy was inevitable. Microsoft announced a $150 million investment to provide a lifeline for Apple, promising to continue developing Microsoft Office for Mac, resolving ongoing legal disputes, and Bill Gates publicly expressed support.

At that time, Microsoft's market value exceeded $200 billion, while Apple's market value had fallen to about $2 billion to $3 billion, making the former roughly 100 times the size of the latter. This investment was widely viewed as a form of "charity," but it was this "lifeline" that bought precious time for Steve Jobs' return and Apple's reconstruction. In the nearly thirty years since, Apple's stock price has increased by about 1,450 times, making it one of the highest-valued companies in the world.

Turning our attention back to 2025. Intel was once the king of the chip industry, with a market value exceeding $500 billion at the peak of the internet bubble in 2000.

However, after nearly two decades of strategic missteps, its current market value is only about $140 billion, and its former market dominance has been severely eroded by competitors like AMD and TSMC. At this time, NVIDIA, which is extending a helping hand, has a market value close to $4.2 trillion, nearly 30 times that of Intel, playing the same role that Microsoft did back then—an industry giant reaching out to a fallen idol

Strategic Considerations: NVIDIA's "Yangmou"

Like Microsoft's actions in the past, NVIDIA's investments are not charitable but based on clear strategic considerations. With the explosive growth in demand for artificial intelligence chips and the intensifying geopolitical risks, NVIDIA urgently needs to increase its manufacturing partners located in the United States to ensure the stability and diversification of its supply chain.

Intel's wafer foundry business has previously struggled, but with NVIDIA's massive orders and technological collaboration backing, its prospects have suddenly become clear. A commentary from "QTR's Fringe Finance" analyzes that if NVIDIA ultimately decides to shift part of its advanced chip production from TSMC to Intel, it would have a "transformative" impact on Intel and the entire industry.

Will History Repeat Itself?

Although the prospects are full of imagination, the market is not without doubts. Skeptics believe that Intel's problems are deeply entrenched, and this investment may merely be a prelude to the company's future breakup or eventual acquisition.

However, supporters point out that this is reminiscent of the pessimistic views on Apple in the late 1990s. The lesson of history is that iconic companies, when seemingly at the end of their rope, often manage to achieve a surprising rebound through self-reform and the right collaborations at critical moments. Some believe that those investors who witnessed Apple's miracle at the turn of the century will not easily underestimate Intel's potential for recovery this time.

In 1997, Microsoft's bet on Apple seemed foolish. In 2025, NVIDIA's bet on Intel seems risky. But if history can serve as a guide, this may mark the beginning of an astonishing second act