<div id="readability-page-1"><p>Shares of <strong>Intel </strong><span>(INTC<span> 22.81%</span>)</span> are flying this week, up 27% as of market close on Thursday. The jump comes as the <strong>S&amp;P 500</strong> and <strong>Nasdaq-100 </strong>gained 0.7% and 1.5%, respectively.</p> <p>The chipmaker's stock exploded this week after <strong>Nvidia</strong> announced a $5 billion investment and &#34;multigeneration&#34; partnership agreement with Intel.</p>  <h2>Nvidia bets on Intel</h2> <p>On Thursday, Nvidia said it is investing $5 billion into the struggling company at a purchase price of $23.28 a share. Under the partnership terms, Intel will make custom CPUs that Nvidia will use in its AI data center platforms. Intel will also make use of Nvidia's technology to enhance its PC offerings.</p>  <p>Intel's CEO, Lip-Bu Tan, said the move will help the company in its turnaround efforts, allowing it to &#34;go to market to win.&#34; A key question remains on what the deal will mean for Intel's foundry business. Nvidia's Jensen Huang told investors that Taiwan Semiconductor Manufacturing Company (TSMC) will remain its primary fabricator. However, it's possible that Nvidia could still make use of Intel's manufacturing capabilities for certain products.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzQyOTYvY2lwc2ludGVsLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="437" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzQyOTYvY2lwc2ludGVsLmpwZyZ3PTcwMA"/></p><p>Image source: Getty Images.</p> </div> <h2>Nvidia's stake could make the difference for Intel</h2> <p>This is a critical time for Intel. The dominant U.S. chipmaker for years, the company fell behind in the age of generative AI. Its top and bottom lines have taken a severe beating, and the company has gone through significant restructuring and major layoffs in an attempt to stabilize its balance sheet.</p> <p>While this investment is certainly encouraging, there are still some questions, especially around Intel's manufacturing. This could be a major step in Intel's revival, or it could be an early step in Intel being stripped for parts. One Wall Street manager said the company could become &#34;a shadow of its former self&#34; with a fate similar to that of Xerox.</p> <p>I'm cautiously optimistic. For investors comfortable with risk, Intel is a good pick.</p>                                                                             </div>

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<p>Intel's stock surged 27% this week following Nvidia's announcement of a $5 billion investment and partnership to develop custom CPUs for AI data centers. This collaboration aims to aid Intel's turnaround efforts amid its struggles in the competitive chip market. While the investment is seen as a positive step, concerns remain about Intel's manufacturing capabilities and its future direction. Analysts express cautious optimism, suggesting Intel could be a worthwhile investment for risk-tolerant investors.</p>

- Intel's shares surged 27% this week following Nvidia's announcement of a $5 billion investment and partnership to develop custom CPUs for AI data centers.  
- The investment aims to aid Intel's turnaround efforts, although concerns remain about the implications for its foundry business and competition with Taiwan Semiconductor Manufacturing Company.  
- While the deal presents a potential revival for Intel, uncertainties linger regarding its future, with some analysts warning it could face significant challenges ahead.  

Why Did Intel Stock Skyrocket 27% This Week?