<div id="readability-page-1"><div><div>Intel INTC stock surged on Thursday after unveiling a sweeping partnership with Nvidia NVDA to co-develop custom chips and next-generation systems, a breakthrough that thrusts the long-struggling chipmaker into the center of the artificial intelligence boom and signals a new front in the global race for computing dominance.Wedbush analyst Dan Ives framed Nvidia and Intel’s collaboration as a game-changing moment that pulls Intel “front and center” into the artificial intelligence race.The analyst argued the deal, paired with Washington’s recent 10% government stake, marks a golden streak for Intel after years of investor frustration.Also Read: Intel Gets Lifeline: Trump Administration Takes 10% Stake To Rescue Struggling Foundry UnitHe noted that Intel will build Nvidia-custom CPUs (central processing units) for data centers, which Nvidia will integrate into its AI infrastructure platforms.Intel will also design and sell a system-on-chip (SoC) incorporating Nvidia RTX graphics processing unit (GPU) chiplets, combining high-performance CPUs and GPUs for PCs.By tightly linking Nvidia’s AI and accelerated computing stack with Intel’s CPU and x86 ecosystem, the companies are laying the groundwork for the next wave of computing, Ives noted.The analyst noted that this partnership strengthens U.S. leadership in the AI arms race against China and transforms Intel from a laggard into a catalyst.With AI infrastructure spending likely to reach $3–4 trillion by 2030, he stressed that Nvidia continues to dominate the chip landscape while competitors cough out “rent” to keep up.Ives concluded that the alliance does not alter either company’s individual growth strategies but positions both to capture outsized demand as sovereigns and enterprises scramble for the world’s most advanced chips.Price Actions: Intel shares were trading higher by 29.36% to $32.21 at the time of publication on Thursday. NVDA was up 3.47%.<ul> <li>Nvidia’s China Chip Boom Faces Threat As Beijing Pushes For Homegrown AI</li> </ul>Image via Shutterstock</div></div></div>

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Intel's stock surged 29.36% after announcing a partnership with Nvidia to co-develop custom chips, positioning Intel at the forefront of the AI boom. Wedbush analyst Dan Ives described the collaboration as transformative, enhancing U.S. leadership in AI against China. Intel will create Nvidia-custom CPUs for data centers and design a system-on-chip integrating Nvidia's GPUs. This partnership is expected to capitalize on the projected $3–4 trillion AI infrastructure spending by 2030, while both companies maintain their individual growth strategies.

- Intel's stock surged 29.36% after announcing a partnership with Nvidia to co-develop custom chips and systems, positioning Intel in the AI market.  
- Wedbush analyst Dan Ives described the collaboration as transformative, enhancing U.S. competitiveness in AI against China and marking a turnaround for Intel.  
- The partnership will see Intel produce Nvidia-custom CPUs for data centers and integrate Nvidia's GPU chiplets into its systems, aiming to meet the growing demand for advanced chips.

Nvidia's Bold Move Catapults Intel To The Heart Of AI Innovation