Intel shares rose 48% this year after announcing new investments from Nvidia, SoftBank, and accelerated US government funding.

The deals included a US$5 billion share sale to Nvidia, a US$2 billion investment from SoftBank, and the accelerated payout of US$8.9 billion in previously pledged funds from the US government.

Despite these gains, Intel’s chip foundry business remains unprofitable, posting over US$13 billion in losses on US$18 billion in revenue over the past year.

Nvidia CEO Jensen Huang said the new partnership is a product collaboration, and that Nvidia will continue to rely on Taiwan Semiconductor Manufacturing Co. as it assesses Intel’s technology.

Analyst estimates show little change in Intel’s projected profitability for 2025 and 2026, with forecasts of US$640 million and US$3.2 billion in adjusted net income, respectively.

Intel’s capital spending is expected to reach US$18 billion in 2025, keeping free cash flow negative.

🔗 Source: Bloomberg

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