Intel Corporation (INTC) Rose Following the Strategic Partnership Announcement with Nvidia
Ariel Investments, an investment management company, released its “Ariel Global Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equities rallied in the third quarter, driven by AI enthusiasm, resilient corporate earnings, the first U.S. rate cut of the year, and targeted policy easing across key regions. Against this backdrop, the Ariel Global fund traded +4.99% higher in the quarter, compared to the +7.62% return of the MSCI ACWI Index and +6.13% return of the MSCI ACWI Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Ariel Global Fund highlighted stocks such as Intel Corporation (NASDAQ:INTC). Intel Corporation (NASDAQ:INTC) designs, develops, manufactures, markets, and sells computing and related products and services. The one-month return of Intel Corporation (NASDAQ:INTC) was -7.02%, and its shares gained 42.98% of their value over the last 52 weeks. On November 18, Intel Corporation (NASDAQ:INTC) stock closed at $34.33 per share with a market capitalization of $163.754 billion.
Ariel Global Fund stated the following regarding Intel Corporation (NASDAQ:INTC) in its third quarter 2025 investor letter:
"Shares of semiconductor chip manufacturer, Intel Corporation (NASDAQ:INTC) also rose following the announcement of a strategic partnership with NVIDIA to co-develop multiple generations of custom data center and personal computing solutions. The collaboration will integrate NVIDIA’s accelerated computing and AI stack with Intel’s x86 central processing unit (CPU) architecture, leveraging NVIDIA’s NVLink interconnect technology to enhance performance and scalability. As part of the agreement, NVIDIA intends to invest $5 billion in Intel common stock, pending regulatory approval—underscoring confidence in Intel’s long-term trajectory. The partnership arrives amid Intel’s ambitious turnaround strategy, aimed at reclaiming leadership in the semiconductor space. The company is making substantial investments in manufacturing and foundry services, supported by significant subsidies from both U.S. and European governments. While execution risks remain, Intel’s scale, deep engineering capabilities, and increasingly strategic role in securing resilient U.S. chip supply chains position it as a key beneficiary of the AI and computing revolution. At current levels, the stock offers long-term exposure to these secular trends at a relative discount."
Intel Corporation (NASDAQ:INTC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 82 hedge fund portfolios held Intel Corporation (NASDAQ:INTC) at the end of the second quarter, compared to 91 in the previous quarter. In the third quarter of 2025, Intel Corporation (NASDAQ:INTC) reported $13.7 billion in revenue, up 6% sequentially. While we acknowledge the potential of Intel Corporation (NASDAQ:INTC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
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