10:28 AM EDT, 09/18/2025 (MT Newswires) -- Intel ( INTC ) shares surged on Thursday after Nvidia ( NVDA ) agreed to invest $5 billion in the rival company and jointly develop new data center and personal computer chips.

Technology bellwether Nvidia ( NVDA ) will buy Intel ( INTC ) shares at $23.28 per share in a deal that still requires regulatory approvals, according to a joint statement.

Intel's ( INTC ) shares soared 24% intraday, while Nvidia's ( NVDA ) rose 2%.

"This historic collaboration tightly couples Nvidia's ( NVDA ) (artificial intelligence) and accelerated computing stack with Intel's ( INTC ) (central processing units) and the vast x86 ecosystem," Nvidia ( NVDA ) Chief Executive Jensen Huang said. "Together, we will expand our ecosystems and lay the foundation for the next era of computing."

The integration will aim to speed up applications and workloads for hyperscale, enterprise, and consumer markets.

The collaboration will "enable new breakthroughs for the industry," Intel ( INTC ) CEO Lip-Bu Tan said.

"We appreciate the confidence Jensen and the Nvidia ( NVDA ) team have placed in us with their investment and look forward to the work ahead as we innovate for customers and grow our business," Tan said.

The deal with Nvidia ( NVDA ) comes about a month after Intel ( INTC ) said that the Trump administration would invest $8.9 billion in the company.

"This is a game changer deal for Intel ( INTC ) as it now brings them front and center into the AI game," Wedbush Securities analysts including Daniel Ives said in a note. "Along with the recent US government investment for 10% this has been a golden few weeks for Intel ( INTC ) after years of pain and frustration for investors."

Price: 173.65, Change: +3.36, Percent Change: +1.97