Nvidia said on Thursday that it would buy $5 billion worth of Intel’s common stock, becoming another major shareholder in the beleaguered company just weeks after the US government took a roughly 10% stake.

"Having Jensen's blessing is priceless," wrote Bernstein senior analyst Stacy Rasgon about Nvidia's $5 billion investment in Intel.

Nvidia will invest $5 billion in its competitor Intel to further intertwine Nvidia’s AI-boosting chips and Intel’s x86 architecture and CPUs. The companies will work together on several generations of data center and PC infrastructure, both companies announced on Thursday.

Nvidia's deal with Intel could put the struggling chipmaker's next-generation manufacturing technology on a stronger footing, even without a direct commitment from the AI chip leader to use that technology to make its own chips,

Nvidia is investing $5 billion in Intel. The news comes after the US government took a roughly 10 percent equity stake in the struggling chipmaker.

The Dow industrials, S&P 500 and Nasdaq all closed higher, with tech shares helping send the stock indexes to new records.

Bloomberg journalists discuss today's biggest winners and losers in the stock market. Listen for analysis on the companies making news on Wall Street.