Nvidia Helps Intel Recover by Buying Shares Worth IDR 83.8 Trillion

JAKARTA - Nvidia is buying shares of Intel, a semiconductor company that is its competitor. This stock purchase was known after the filing documents were revealed on Monday, December 29.

The company led by Jensen Huang bought Intel shares worth 5 billion US dollars (Rp83.8 trillion). The company paid 23.38 US dollars or around Rp390 thousand to get more than 214.7 million shares of Intel common stock.

This major transaction is a continuation of the results of discussions agreed upon by both companies in September. This step is carried out through a closed share placement mechanism to strengthen the financial position of both companies in the global market.

This investment is very important for Intel as they are trying to recover their financial condition. Over the past few years, Intel has faced major challenges due to the wrong strategy and very high production expansion costs.

Before the share purchase was made, the US antitrust agency had given permission for this deal. The Federal Trade Commission (FTC) also issued its approval note a few weeks ago.

After the transaction was carried out, launching from Reuters, the stock movements of the two companies showed a reaction on the exchange. Nvidia shares were down slightly at around 1.3 percent in premarket trading, while Intel shares were stable.

Nvidia, which currently holds the title of the company with the highest market value in the world, continues to strengthen its technology ecosystem. This funding support is expected to accelerate Intel's transformation process in the chip manufacturing industry.