Shares of Intel rose 33% Thursday after NVIDIA announced it will make a $5 billion investment in the company to make NVIDIA's data center and PC chips.

NVIDIA announced that it will invest $5 billion in chip-maker Intel. Photo by John Angelillo/UPI UPI

Sept. 18 (UPI) -- Shares of Intel rose 33% Thursday after NVIDIA announced a $5 billion investment in the company to make data center and PC chips.

NVIDIA is investing its stake at a price of $23.28 a share, a press release said. Intel shares jumped 33% to around $33 a share in premarket trading, CNBC reported.

The collaboration deal says that Intel will build custom NVIDIA CPUs for data centers that the company will integrate into its AI infrastructure platforms and sell.

For PCs, Intel will build and sell x86 system-on-chips that integrate NVIDIA RTX GPU chiplets. These new x86 RTX SOCs will power a wide range of PCs, a press release said.

NVIDIA will invest $5 billion in Intel's common stock at a purchase price of $23.28 per share, which will need regulatory approval.

"At the heart of this reinvention is NVIDIA's CUDA architecture," NVIDIA founder and CEO Jensen Huang said in a statement. "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."

Intel, which has struggled recently, last month got a boost from a 10% investment from the federal government. Earlier this year, its shares hit the lowest in more than 10 years.

"Intel's x86 architecture has been foundational to modern computing for decades, and we are innovating across our portfolio to enable the workloads of the future," Lip-Bu Tan, CEO of Intel, said in a statement. "Intel's leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA's AI and accelerated computing leadership to enable new breakthroughs for the industry."

Huang and Tan will hold a press conference about the deal at 1 p.m. EDT Thursday.