Nvidia's US$5-billion investment will make the company one of Intel’s largest shareholders, with a likely ownership stake of 4 per cent or more.

Nvidia on Thursday said it will invest US$5-billion in Intel, throwing its heft behind the struggling U.S. chip foundry, but stopped short of giving Intel a crucial manufacturing deal.

The pact, which also includes a plan for Intel INTC-Q and Nvidia NVDA-Q to jointly develop PC and data centre chips, represents a potential risk to Taiwan’s TSMC TSM-N . TSMC currently manufactures Nvidia’s flagship processors, business that the world’s most valuable company could one day extend to Intel. AMD AMD-Q , which competes with Intel for supplying chips to data centres, also stands to lose thanks to Nvidia’s backing.

Shares of Intel surged 12 per

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