CNBC's Jim Cramer believes Nvidia's investment and tech partnership with Intel is significant.

The deal between the chipmakers, whose fortunes have diverged sharply, includes plans to collaborate on technology to power artificial intelligence.

Nvidia CEO Jensen Huang hailed the deal as a "historic collaboration," adding that "AI is powering a new industrial revolution."

The two American chipmakers will partner to make personal computer and data centre chips, in a lifeline for Intel as it struggles to profit from the AI boom.

CNBC's Jim Cramer believes Nvidia's investment and tech partnership with Intel is significant.

It's an unexpected lifeline to an old rival.

Intel is poised to fall as it struggles to compete with rivals, despite securing a $5 billion investment pledge from Nvidia, according to Citi.