Nvidia spends $5B on Intel bailout, instantly gets $2.5B richer

The deal negotiated in September locked Nvidia into a purchase price of $23 per share. Intel shares traded at $36 on Monday

Nvidia’s $5 billion Intel stock purchase is already worth $7.58 billion, turning the recently approved bailout of its rival into a shrewd financial play.

Nvidia had locked in a purchase price of $23.28 per share for Intel when Nvidia CEO Jensen Huang and Intel CEO Lip-Bu Tan struck a deal in September.

The deal had been under scrutiny by the U.S. Federal Trade Commission, which was examining whether Nvidia’s potential 4 percent ownership stake could run afoul of antitrust laws.

However, the FTC gave the deal a greenlight on Dec. 18.

The purchase of 214 million shares closed on Dec. 26, according to Intel regulatory filings. Intel shares closed Monday at $36.68.

Under the terms of the deal, Nvidia and Intel will ...