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Nvidia Corporation shares declined in premarket trading on Monday, December 29, 2025, following Intel’s announcement that it has completed a $5 billion private stock sale to the AI chip giant. Intel disclosed that it finalized the sale of 214,776,632 shares of its common stock to Nvidia at $23.28 per share, totaling $5.0 billion in cash.

The transaction, which was executed under a Securities Purchase Agreement dated September 15, 2025, represents a significant investment by the world’s most valuable company in its struggling competitor. U.S. antitrust agencies had previously cleared the investment, with the Federal Trade Commission posting approval earlier in December.
 

Intel Completes $5B Share Sale to Nvidia

Intel completed the issuance and sale of shares on December 26, 2025, following the agreement initially reported to the U.S. Securities and Exchange Commission on September 18, 2025. The deal represents a private placement under Section 4(a)(2) of the Securities Act of 1933, which exempts certain private offerings from registration requirements.

According to market data, Nvidia shares were trading at $188.33 in premarket hours at 7:42 AM EST on December 27, down $2.20 or 1.15% from the previous close of $190.53.

The transaction is viewed as a strategic investment by Nvidia in Intel, which has struggled with declining market share and financial challenges. Intel’s stock had shown remarkable strength earlier in the year with an 80% year-to-date return, though current trading at $36.20 suggests the company is considered overvalued by some fair value metrics.

Intel operates with a market capitalization of $172.67 billion and maintains a moderate debt level with a “FAIR” overall financial health score according to InvestingPro data.
 

Nvidia Stock Pulls Back Modestly After Intel Update

Despite the premarket decline, Nvidia has delivered exceptional performance over longer timeframes. The company has posted a year-to-date return of 41.92%, significantly outperforming the S&P 500’s 17.82% gain over the same period.

Over the past year, NVDA shares have climbed 36.20%, while three-year and five-year returns stand at an impressive 1,154.25% and 1,370.44% respectively. The stock closed at $190.53 on December 26, 2025, up $1.92 or 1.02% from the previous session.

Nvidia maintains a commanding market capitalization of $4.639 trillion with a trailing price-to-earnings ratio of 47.16 and a forward P/E of 24.94. The company’s profitability remains robust with a profit margin of 53.01% and return on equity of 107.36%.

Analysts maintain largely positive views on the stock, with a consensus price target of $253.02, suggesting upside potential from current levels. The company’s next earnings report is scheduled for February 25, 2026, which will provide further insight into its AI chip business performance.

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