Intel surges 30% after Nvidia says it will invest $5 billion in chipmaker, co-develop data centers and PCs

Nvidia said it will invest $5 billion in Intel as part of a deal to co-develop data center and PC products with the troubled chipmaker, which took on the U.S. government as an investor last month.

Nvidia is investing its stake at a price of $23.28 a share, a release from the company said. Intel shares jumped 33% to around $33 a share in premarket trading following news of the deal.

“This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms. Together, we will expand our ecosystems and lay the foundation for the next era of computing,” said Nvidia CEO Jensen Huang in a release.

The investment, which is subject to regulatory approvals, does not appear to include the manufacturing of Nvidia chips with Intel’s foundry. Huang and Intel CEO Lip-Bu Tan will hold a press conference on the deal at 1 p.m. ET.

Shares of Nvidia, which is in the middle of U.S. and China trade negotiations to get approval to sell less-advanced chips in China, was up 3% in premarket trading.

Intel shares, which hit the lowest in more than a decade earlier this year, have rebounded after finding renewed support from the Trump administrating, striking a deal for the U.S. government to invest 10% in the chipmaker last August. Intel shares were up 11% since the start of July heading into Thursday’s trading.