Stock markets advanced Thursday as tech shares jumped after AI-chips giant Nvidia announced a $5 billion investment in struggling US rival Intel and the Federal Reserve cut interest rates.

The tech-heavy Nasdaq led gains on Wall Street, with Intel shares soaring 29 percent and Nvidia gaining more than three percent.

The dollar gained against other major currencies.

"Even if Intel needs handouts from its peers in Silicon Valley, investors like it," said Kathleen Brooks, research director at trading platform XTB.

Under the Nvidia-Intel deal, the companies will jointly develop chips for PCs and data centres.

The deal comes on the heels of the United States taking a 10-percent stake in Intel, which has fallen behind in recent years after missing key technology shifts.

The move propelled

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