Bitter rivals Advanced Micro Devices Inc. and Intel Corp. on Monday unveiled a partnership that will help the chipmakers take on Nvidia Corp.

Under the partnership, AMD's semi-custom graphics chip will be integrated into Intel's new multi-chip processor package for personal computing.

AMD's shares were up 6.5 percent at $11.84 in early trading. Intel was up 1 percent, while Nvidia was down 0.5 percent.

Designed by Intel, the new product will integrate an Intel core processor together with a semi-custom radeon graphic chip and second-generation high bandwidth memory (HBM2) into one package, AMD said in a statement.