Shares of Intel ( INTC) and GE ( GE) surged Thursday after the companies announced an ambitious $250 million strategy to target the home health care market.

Intel, which is better known for its server and PC processors, has its eye on the booming market for home health monitoring, and is partnering with GE to develop and sell healthcare technology. With the tech sector taking a pounding during the recession, Intel is shrewdly tapping new revenue streams.

"We're at an inflection point in health care in this country, and, potentially, globally," said Paul Otellini, the Intel CEO, at a packed press conference in New York City. "Staggering costs of health care are bankrupting families, crippling businesses and dragging down the economy."

With health care firms attempting to reduce expensive hospital stays, analyst firm DataMonitor estimates that the home health monitoring market will grow from $3 billion this year to $7.7 billion by 2012.

Investors responded warmly to Intel and GE's alliance. Intel's shares rose 95 cents, or 6.32%, to $15.98, outpacing the broader advance in tech stocks that saw the Nasdaq gain 4.49%. GE's stock also climbed, rising 82 cents, or 8.6%, to $10.99.

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