NVIDIA (Nvidia Corp.) decided to invest US$5 billion in Intel Corp. and jointly carry out chip design. Analysts believe this is beneficial to semiconductor equipment vendors.
Seeking Alpha reported on the 18th that Timothy Arcuri, a analyst at UBS, published a research report pointing out that the above agreement is beneficial to semiconductor equipment stocks, especially Glass testing equipment manufacturer KLA Corporation, because this will increase the survival rate of Intel's Glass foundry industry and improve Intel's long-term capital expenditure outlook. However, Arcuri admitted that Intel's capital expenditure in 2026 should not change much, and the forecast may decline significantly.
Arcuri also pointed out that in the long run (about 3 to 4 years), if the NVIDIA investment case prompts Intel to accelerate the spin-off of product design and the GRF foundry department, allowing Intel's Product Department to more freely use Telco's GRF foundry services, it may be unfavorable to Ultramicro (AMD).
Yahoo Finance reported that although the agreement announced on the 18th was only related to Intel's Products Department, CFRA analyst Angelo Zino believes that this will increase Intel's credibility and benefit its crystal foundry business. He believes that this agreement will at least allow NVIDIA to start testing services provided by Intel Foundry Services (IFS) at some point.
Kolei reported a 5.74% slump on the 18th and closed at $1,046.69, setting a record high in history. Other semiconductor equipment stocks in the United States have been expelled simultaneously. Applied Materials (Applied Materials, Inc.) jumped 6.53%, closing at a new closing high since August 13. ASML's ADR jumped 6.37%, closing at $927.8, setting a new closing high since August 21, 2024.
Extended reading: NVIDIA and Intel cooperate to strengthen the principle of addition and do not change the original plan, and the cooperation with NTU will continue. 【Latest】NVIDIA invests US$5 billion in Intel to strengthen cooperation in developing chips, Intel Chen Liwu expressed his gratitude