“I would like to thank Jensen for confidence in me,” Tan 6 months as a new executive of Intel by announcing a $ 50 billion deal per year with NVIDIA

NVIDIA and Intel made date on Thursday, September 18, when the giant chips company announced a surprise link. NVIDIA (NVDA) will invest $ 5 billion in Intel (INTC), and the two companies will develop data and computers products that executives have promised will enter the “next era of computing”.

But for many investors, it may be more interesting than the details of the deal is what Jensen Huang, CEO of NVIDIA, said about partnership.

Huang is one of the greatest executives in business, as NVIDIA has increased by 1,272 % over the past five years and those with his needs in processing graphics processing units as we know them. New Tan in the job, after taking over from the Intel Pat Gelsiner icon in a desperate attempt to transfer the company. Intel stocks decreased nearly 41 % during the same time period.

For Tan, this announcement with NVIDIA, which came a few days after President Donald Trump announced that the United States government will get a stake in Intel, is a real victory. It is also a great vote on the confidence in the potential of the respectable Tan’s Translate from Huang.

In recognition that Tan said, “I would like to thank Jensen for trusting me. Then our team and Intel will work hard to make it a good return for you.”

Tan also participated that the deal was announced on the six -month anniversary for the first time in the executive role.

Huang also presented some kind words, admitting that the two companies worked closely in the deal for about a year.

“I am pleased to participate with the lips, a long -time friend and many of my colleagues in Intel in this wonderful partnership, this historical partnership.”

So what comes after that?

Those suddenly on Intel believes that the Huang shot in the arm and criticism from the Trump official will help Intel Power through its stagnation and come out stronger. One of the main objectives is for Intel to install a masculine and transforming works.

However, at least at the present time, it seems that converting NVIDIA to the Foundry Intel customer is out of the table. “We have always evaluated the Intel Foundation technology, and we will continue to do so. But today, this advertisement directly focuses on these dedicated central processing units,” Huang said.

The bulls may not get everything in their list of wishes, but the intc shares have declined by 16 % last month thanks to all positive news. In addition, the Lip-Bu Tan had just two months the first six months, and perhaps creating a “new era” of driving for the chips maker one day.

On the date of publication, Sarah Holsman (either directly or indirectly) did not have positions in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com