Nvidia is taking a $5 billion stake in Intel and committing to new business between the chip giants. The deals are an endorsement of the so-far bumpy turnaround led by Intel CEO Lip-Bu Tan.
Wall Street is rising toward more records on Thursday as Nvidia and Intel lead a rally for technology stocks after announcing a deal that includes a $5 billion investment.
If there's any question whether artificial intelligence (AI) is still in its early innings, investors just need to look at Oracle's projection that its cloud infrastructure revenue will soar from $10.3 billion to $144 billion in the coming years, with contracts from top AI customers already locked in.
Over the past decade, Nvidia (NVDA 3.95%) has transformed from a niche chip designer serving gamers into the clear leader of the artificial intelligence (AI) era. At the center of this shift are its graphics processing units (GPUs) -- advanced chipsets that have become the backbone of generative AI.
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