Nvidia CEO Denies Talks on Intel Stake Purchase Amid Industry Shifts

Huang Addresses Speculation at Developer Conference / Reuters

Nvidia CEO Jensen Huang has publicly dismissed rumors suggesting his company was approached to join a consortium aimed at acquiring a stake in Intel (NASDAQ:INTC), a move that could have reshaped the semiconductor industry landscape. Speaking at Nvidia’s annual developer conference in San Jose, California, Huang responded to questions about potential involvement with Taiwan Semiconductor Manufacturing Co (TSMC) in a deal targeting Intel’s manufacturing operations. "Nobody’s invited us to a consortium," Huang stated, adding with a touch of humor, "Nobody invited me. Maybe other people are involved, but I don’t know. There might be a party. I wasn’t invited." This statement puts to rest speculation fueled by earlier Reuters reports that TSMC had reached out to Nvidia, Broadcom (NASDAQ:AVGO), and Advanced Micro Devices (NASDAQ:AMD) about forming a joint venture to operate Intel’s factories, a plan reportedly backed by U.S. President Donald Trump. Despite the buzz, Huang’s remarks indicate Nvidia is not currently in the mix, leaving the future of Intel’s manufacturing arm uncertain as industry dynamics continue to evolve.

The backdrop to this denial is a flurry of activity in the semiconductor sector, with Intel exploring a significant restructuring that could see its manufacturing and product design businesses split apart. Reports suggest Intel has already taken steps in this direction, establishing Intel Foundry as a separate subsidiary with its own board and financial reporting structure. This potential separation is seen as a strategic pivot to bolster Intel’s competitiveness against TSMC, the world’s leading contract chip manufacturer. Analysts point to the success of Intel’s upcoming 18A process, slated for release in 2025, as a critical factor that could determine whether this split becomes permanent. If successful, the 18A process could power advanced chips like Panther Lake, potentially strengthening Intel’s position in the market. However, challenges remain, including delays in key projects such as the Ohio factory, now pushed to 2030, which underscore the complexity of this transition. Meanwhile, TSMC’s interest in Intel’s factories has added another layer of intrigue, with discussions reportedly involving a consortium that could redefine global chip production.

Huang’s comments come at a time when Nvidia itself is riding high on demand for its cutting-edge AI chips, particularly the Blackwell series, which have solidified its status as a powerhouse in the tech world. During a separate Q&A session with financial analysts, Huang revealed that orders for approximately 3.6 million Blackwell chips from four major cloud service providers only scratch the surface of true demand, as they exclude significant purchases from Meta Platforms (NASDAQ:META) and smaller firms. Meta, a key Nvidia customer, plans to invest up to $65 billion in AI infrastructure this year, with a substantial portion earmarked for Nvidia’s chips to train its open-source Llama models. This robust demand underscores Nvidia’s dominance in the AI chip market, even as competitors like China’s DeepSeek introduce alternatives that claim efficiency with fewer chips. Huang dismissed concerns about DeepSeek’s R1 model, arguing that its focus on reasoning would actually increase computational needs, thereby driving further demand for Nvidia’s offerings. Nvidia’s stock rose nearly 2% following these remarks, rebounding from a 3.4% dip the previous day when investors questioned the company’s adaptability to shifting AI market trends.

Beyond the Intel consortium rumors, Huang also addressed broader industry concerns, including the impact of potential tariffs under the Trump administration. He noted that Nvidia anticipates minimal short-term effects but is committed to onshoring production in the United States over the long term, though he offered no specific timeline. This aligns with TSMC’s own plans to expand its U.S. footprint, with a reported $100 billion investment to build five additional chip facilities, including a new plant in Arizona where Nvidia is already running production silicon for its Blackwell chips. This partnership highlights Nvidia’s strategic reliance on TSMC, even as it distances itself from direct involvement in Intel’s factory operations. The Arizona facility, part of TSMC’s broader push to meet U.S. demand for domestic chip production, positions Nvidia favorably amid growing geopolitical pressures to reduce reliance on overseas manufacturing.

The interplay between Nvidia, Intel, and TSMC reflects deeper shifts in the semiconductor industry, where technological innovation, national security, and economic strategy converge. Intel’s potential manufacturing separation, if realized, could open doors for TSMC to expand its influence in the U.S., particularly if a consortium with other tech giants takes shape. However, Huang’s unequivocal stance suggests Nvidia is content to focus on its core strengths in AI chip design and production, leveraging TSMC’s manufacturing prowess rather than diving into the complexities of Intel’s foundry business. For Intel, the stakes are high as it navigates financial pressures and seeks to reclaim its former dominance, while TSMC’s aggressive U.S. expansion signals a long-term bet on American semiconductor self-sufficiency.

As these developments unfold, the semiconductor market remains a hotbed of speculation and opportunity. Nvidia’s strong order pipeline, Intel’s restructuring efforts, and TSMC’s strategic maneuvers collectively paint a picture of an industry in flux, driven by the insatiable demand for AI and advanced computing. Huang’s remarks at the conference not only clarify Nvidia’s position but also spotlight the broader forces at play, from Trump’s influence on domestic production to the relentless pace of technological advancement. For now, Nvidia stands apart from the Intel consortium talks, but its role as a linchpin in the AI ecosystem ensures it will remain a central figure in the industry’s evolution, regardless of how the Intel-TSMC saga resolves.