Shares of Intel Corp. (NASDAQ:INTC) soared 28% on Thursday—notching their best session ever—after Nvidia Corp. (NASDAQ:NVDA) announced it would pour $5 billion into the rival chipmaker.

The agreement signaled a Wall Street shake-up that observers say will reshape the semiconductor world.

What Happened: Nvidia And Intel Are Joining Forces

Nvidia revealed a $5 billion investment in Intel common stock at $23.28 per share, giving it around a 5% ownership stake.

The deal, however, goes far beyond equity—it's about co-developing multiple generations of custom chips.

For data centers, Intel will build custom x86 CPUs integrated into Nvidia's AI infrastructure platforms.

On the PC side, Intel plans to launch new x86 RTX SoCs—system-on-chips combining Intel CPUs with Nvidia RTX GPU chiplets—targeting the massive 150 million-unit laptop market.

Although the investment is pending regulatory approval, analysts believe this marks a pivotal turning point in AI system architecture.

Goldman Sachs: AMD And ARM Under Pressure

Goldman Sachs analyst James Schneider called the Nvidia-Intel collaboration a net negative for both Advanced Micro Devices Inc. (NASDAQ:AMD) and Arm Holdings Inc. (NASDAQ:ARM), noting that the partnership could shift enterprise AI and PC dynamics in favor of the two tech giants.

Schneider said ...