Intel Soars 23%, Best Week Since 2000
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Intel’s (NASDAQ: INTC) stock experienced a remarkable surge last week, climbing 23.6% in its most impressive performance since January 2000.
This dramatic rally was primarily fuelled by speculation surrounding potential strategic partnerships and restructuring initiatives for the semiconductor giant.
The catalyst for this extraordinary movement appears to be rumours of a possible collaboration between Intel and Taiwan Semiconductor Manufacturing Company (NYSE: TSM), its major rival in chip manufacturing.
Market analysts, including those from Baird, have suggested that TSMC might send engineers to Intel’s foundry business, potentially leading to the creation of a new entity jointly owned by both companies.
Such a venture could potentially benefit from US government funding under the CHIPS Act, aimed at bolstering domestic semiconductor production.
Adding to the positive sentiment, Vice President JD Vance’s recent statements about the Trump administration’s desire for AI chips to be designed and manufactured domestically have further boosted investor optimism.
This policy stance could significantly benefit Intel, as it operates fabrication facilities within the United States, unlike competitors such as AMD and Nvidia.
The market’s reaction also reflects growing anticipation of a potential turnaround for Intel, which has faced challenges in recent years.
The company’s foundry business, in particular, has struggled, posting a substantial $13.4 billion loss in 2024.
However, the possibility of strategic partnerships and government support has reignited investor interest in Intel’s long-term prospects.
It’s worth noting that despite this impressive rally, Intel’s stock remains down over 40% from its levels a year ago, indicating the magnitude of the challenges the company has faced.
The semiconductor industry is highly competitive and rapidly evolving, particularly in the AI chip market where Intel has lagged behind rivals like Nvidia.
As the situation continues to develop, investors and industry observers are closely monitoring for any official announcements or concrete steps towards partnerships or restructuring.
The outcome of these potential deals could have far-reaching implications not only for Intel but for the broader semiconductor industry and US technology manufacturing landscape.
Sources: eToro, MarketScreener