Is Intel Making a Comeback? Nvidia’s $5 Billion Bet Explained

In this Market Mondays clip, Rashad Bilal, Ian Dunlap, and Troy Millings dive deep into Intel’s stunning 22% stock surge following Nvidia’s surprising $5 billion investment. Is this windfall truly a game-changer for Intel, or just another temporary boost for a struggling chip giant? Our experts dissect Nvidia’s move: Is it a strategic hedge to maintain market dominance, or simply a lifeline to prop up a fading competitor?

Ian breaks down why, despite the investment, Intel still lags behind industry leaders like Nvidia, AMD, and TSMC. He points out how this move is less about saving Intel and more about safeguarding Nvidia’s lead in the chip space. Troy digs into Intel’s persistent manufacturing woes, questioning whether any amount of money can close the gap as the world moves to smaller, more advanced chips.

The discussion also touches on government support, the shifting dynamics between CPU and GPU markets, and how Nvidia’s seemingly generous gesture could actually be a clever play to suppress competition. With insights on market allocation, manufacturing gaps, and the future of the semiconductor industry, this clip is a must-watch for investors and tech enthusiasts alike.

Will Intel ever reclaim its former glory or will it remain stuck behind a long list of stronger competitors? Tune in to hear why our hosts aren’t buying into the Intel hype—literally and figuratively.

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Episode Transcript

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Speaker 3 (02:34):
All right, so let's talk about Intel U. Intel stock
ones up after Nvidia announced the five billion dollar investment
and a struggling chip maker. So is this the lifeline
that Intel needed or is it just a flash in
the pan moment.

Speaker 4 (02:56):
Woo doo, all your crew, who do you do? I
know for some reason people want Intel to thrive, but
it is an inferior ship maker if you look at
the class of chip makers, and Video's business is to
make sure that they are operating at the highest level.

(03:20):
And one way to do that is to build remote
and we saw with Elon going to tell Trump, I
miss you in that suite. It's better to have a
great connection with the president than not. So the investment
into Intel is a hedge to make sure that Nvidia
stays in the lead. Also, a term that many people
need to learn mean reversion. So it got up to

(03:43):
thirty two dollars and thirty nine cent. It is curly
at twenty eight dollars and seventy six cent. I think
it would drop back to twenty four within the next
month and a half. Does it breed some life into it, Yes,
but only because of the United States government has an investment
in Intel were wise enough to invest into an American investment,

(04:05):
while they for the moment have lost the investment into China.

Speaker 2 (04:10):
So this was a hedge.

Speaker 4 (04:11):
Is Intel better than Video, No better than AMD, no
better than other chip makers in their class.

Speaker 3 (04:17):
No.

Speaker 4 (04:17):
So I know some of you think that I have
a personal vendetta against Intel. I don't. I think they
just have lost their way, and even though in Video
is investment into them, it does not make them a
world class company.

Speaker 2 (04:32):
I agree with you.

Speaker 1 (04:33):
I'm going to take your quote and I'm going to
say this that everybody in your space is your competition.

Speaker 2 (04:40):
Yep. And I'm going to take a little different approach
because I do agree with you.

Speaker 1 (04:44):
I think it's both a hedge and I think it's
both a way to keep give them a lifeline. We've
seen this now three times over the past two years,
with Intel getting lifelines, first with the Infrastructure bill and
then being the largest application for.

Speaker 2 (04:57):
That infrastructure bill.

Speaker 1 (04:58):
Then we saw the government saying that they're going to
take ten percent of that company, and now we've seen.

Speaker 2 (05:05):
Right and that exact.

Speaker 1 (05:08):
So this is three lifelines that has been given. This
is bigger than an Intel situation. When we talked about
Intel and who their direct competitors were, it wasn't a
GPU market we were talking about. It was a CPU market,
and we told about AMD being the new leader inside
the CPU market, And so does that hurt their business? Well,

(05:29):
if in Video is helping it from an infrastructure standpoint,
yeah it could.

Speaker 2 (05:32):
It could hurt AMD slightly.

Speaker 1 (05:35):
But what it does say is like that second place
spot in GPUs that was also a MD right, and
so if I want you to focus on something another
core piece of business, I'm gonna help with your competitor
to make sure that you stay in that spot and
you never crash the market ship that we have, which
is now up to ninety percent, I believe.

Speaker 2 (05:53):
And so I think it's a it's one of those things.

Speaker 1 (05:55):
Let me hurt my competitors in terms of A and
D when I'm talking about in video family time.

Speaker 2 (06:00):
So it's really interesting. I think the part and.

Speaker 1 (06:02):
I got a lot of text messages Troyes are trying
to invest in Intel. Troyes and time to invest Intel.
I know you guys saying it's dead, it's on a lifeline.
I'm not invested in Intel. The major thing that I
said about Intel, and I'll repeat it, and I still
didn't hear an answer, even with the five billion dollar allocation,
is who is going to solve the manufacturing gap that
Intel has?

Speaker 5 (06:23):
No one right If all these other semi conductors are
downsizing to seven animeter, five animeter, three animeter and.

Speaker 1 (06:35):
You're still at ten, who is helping that manufacturing gap
and how fast can they make that happen.

Speaker 2 (06:42):
I didn't hear one thing about that.

Speaker 1 (06:44):
Perhaps that's what Nvidio has now come on board for,
but that is going to take some time, especially with
a company like this, And as you're trying to get better,
companies are already here and they're better, and they're going
to get better. So it's a tough proposition. I'm not
I'm not sold on Intel. I won't be sold on Intel.
There's too many opportunities, too many companies that are ahead

(07:06):
of it right now and that are going to thrive
for me to say let me move money here and
allocation here and hopes that it catches up.

Speaker 4 (07:14):
TSM is better, AMD is better, and video is better. Also,
we told you Total is better, all common is better,
Meta is better. It's just a it's thirty or forty
companies that are better than Intel. I also told you
a few months ago that they were going to invest
into Intel as a hedge. And if you look from
an operational standpoint, like from a brand strategy standpoint, not

(07:37):
only do they have the best product, but one way
to eliminate competition is to also invest into you in
case you do well. Microsoft did. This is what Apple
when Apple was on their deathbed as well. The difference
is Jensen isn't going to take his eye off the
ball and isn't going to give up a lead the
way Balmber did when he took the rains over a Microsoft.

(08:01):
And the other issue you're going on to workout for
you lose COI for the record, so I know everyone
wants like yo, Intel has a chance. Intel is PS
four When we're going into PS six generational type run,
they won't be able to catch up really quick. For

(08:21):
everyone out there who has a computer, do you have
an Intel anything in your computer right now?

Speaker 2 (08:27):
Right?

Speaker 1 (08:28):
And there isn't a business switch yet right like we
literally watch Oracle change their business structure right, Like, we're
watching Dell fundamentally change their bits.

Speaker 2 (08:39):
The structure is better.

Speaker 4 (08:42):
So you can name a bunch of companies who are
just outperforming at scale and don't think that in video
with investment because the bad part about our competitor investments
and business, they get to see some of the operational
systems that you have in placed. Don't think that they're
not coming for the CPU market. It's like you want

(09:04):
to put the pillo over your face when you're on
life support. Give it to years and Video is going
to get that CPU market as well.

Speaker 1 (09:12):
Yeah, player sign and we saw that when they had
their announcement. I think it might have been right after
GtC when they had those core CPU processors. We're like, damn,
they're back in this space again. Like there's really no
letup from them. So yeah, this is one of those
situations where it's like, all right, I see the competition.
We're already leading here. We watched them take their lead.

(09:35):
Let's go get some market shit over there too.

Speaker 2 (09:38):
Ernest, what's up? Look?

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