Nvidia has completed a $5 billion equity investment in Intel, becoming a 4% stakeholder. The companies will collaborate on custom data center and PC products. Despite Intel’s market cap of $175 billion and 90% return in 2025, the company faces manufacturing bottlenecks. CFO predicts supply constraints peaking in Q1 2026.

Intel is struggling to meet demand due to manufacturing issues but expects improvements. The company’s new CEO has implemented cultural changes to improve operations. Analysts forecast revenue to increase from $52.55 billion in 2025 to $74 billion in 2029. Intel’s free cash flow is expected to improve significantly.

Out of 42 analysts covering Intel, recommendations vary. The average stock price target is $36.74. The investment in Intel could potentially return 100% over the next three years if the stock trades at 25x forward earnings. Story originally published on Barchart.com for informational purposes.

Read more at Yahoo Finance: Nvidia Just Officially Bought $5 Billion Worth of Intel Stock. Should You Buy INTC Too?