Nvidia's $5 Billion Bet on Intel Sends Stock Price Soaring
Nvidia's $5 billion investment in Intel and its selection of Xeon 6 as the host CPU for its DGX Rubin NVL8 AI systems has sent shockwaves through the tech industry, causing analysts to reevaluate their price targets for Intel stock. Despite this significant development, many analysts still trail behind the actual price of shares, which have risen by approximately 465% over the past 12 months.
The RSI indicator is currently reading 55.21, positioning it as neutral-bullish, while green candles continue to soak up sell orders in close proximity to the trendline-resistance alignment. This rally translates into a massive climb for Intel's stock from $18.97 to its current price of $140.05.
Jensen Huang's decision to build the DGX Rubin NVL8 on Xeon 6, coupled with Nvidia's $5 billion equity investment in Intel, represents the strongest signal yet from a third party that Intel's CPU is competitive. This is not an Apple rumor or social media announcement, but rather a product architecture decision from the world's largest infrastructure company in AI.
Q1 2026 saw Data Center and AI revenue reach $5.1 billion, up 22% year-over-year, with non-GAAP EPS at $0.29 while GAAP was negative $0.73 due to heavy foundry investment charges. Intel's Foundry segment has now exceeded $20 billion in annualized revenue.