NVIDIA(NVDA) stock hits an all-time high, and the 5 billion investment in Intel has already generated a return rate of 155%

Driven by a broad rally in the semiconductor industry, Nvidia (NVDA) shares rose 4.3% to $208.26, successfully breaking out of the stock’s ongoing yearlong trading range. The company’s market cap once again returned to $5 trillion and surpassed its all-time high from last October. The Philadelphia Semiconductor Index rose for the 18th consecutive trading day, and Intel (Intel) became one of the key drivers of this round of gains. Nvidia previously invested in Intel at a price of $23.28 per share last year. As INTC’s stock price surged, Nvidia’s related investment gains on paper expanded significantly, with a return on investment of 155%.

The Philly Semi is up 18 straight sessions; gains this year are up 44%

Due to concerns about spending on artificial intelligence, big tech stocks have, for much of this year, lagged behind the broader market. But over the past four weeks, as geopolitical tensions have intensified, investors have sought stability and strong profit growth, and big tech has rebounded.

Chipmakers have been especially strong. The Philadelphia Semiconductor Index rose for the 18th consecutive trading day, hitting a new all-time high, with gains of 44% year to date. Super Micro (AMD) shares jumped 13.9% yesterday, and its market cap first topped $500 billion. Broadcom (AVGO)’s market cap also surpassed $2 trillion, making it the sixth company in U.S. history to reach this milestone.

Intel becomes a key driver; Nvidia’s investment in INTC shares hits another new high

Intel (Intel) became one of the key drivers of this round of gains. The company reported first-quarter earnings that beat market expectations. In particular, it benefited from strong demand for server CPUs, which pushed the stock up 23.6% in a single day, closing at $82.57 and setting a new all-time high.

(Intel’s guidance came in above expectations; AI demand drives a CPU turnaround after Chen Liwu took over, and INTC is already up 3 times)

Nvidia previously invested in Intel last year at $23.28 per share, for an investment amount of $5 billion. As INTC’s stock price surged, Nvidia’s related investment gains on paper expanded significantly, with a return on investment of 155%. Nvidia (NVDA) shares rose 4.3% yesterday to $208.26, successfully breaking out of the stock’s ongoing yearlong trading range. The company’s market cap once again returned to $5 trillion and surpassed its all-time high from last October.

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