Stock of the Day: Intel spikes 5% after proposal for major AI firms to run company's chipmaking foundry
TSMC reportedly approached a handful of US AI chipmakers to potentially operate Intel's foundry in a joint venture.
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- Intel stock is moving up on Wednesday on reports of a foundry joint venture with major chip makers.
- Reuters reported that TSMC is discussing a joint venture to operate Intel's foundry.
- The Taiwanese chipmaker approached Nvidia, Advanced Micro Devices, and Broadcom for the JV.
The move: Intel jumped 5.5% to $20.8 per share on Wednesday. The stock is still down 1.35% this year.
The chart:
Why: On Wednesday, Reuters reported that TSMC and a handful of other AI chipmakers are considering a joint venture to operate Intel's factories.
Sources told the outlet that the Taiwanese semiconductor giant approached Nvidia, Advanced Micro Devices, and Broadcom with the idea. Talks are still in the early stages. TSMC would run operations but own no more than 50% of Intel's foundry.
A separate source told Reuters that Qualcomm is also involved in discussions with TSMC.
What it means: TSMC's involvement follows President Donald Trump's request that the flagship chipmaker help revive Intel's struggling business, according to a Reuters source with knowledge of the private talks.
If a deal is reached, it could mark a positive reversal for Intel's fortunes of late. Shares of the US chipmaker have shed nearly 56% in the last year. Intel reported $18.8 billion in net losses in 2024, while navigating the AI boom, layoffs, and manufacturing delays.
But interest from other US chipmakers has been mounting. A report last week found that Nvidia and Broadcom were running manufacturing tests at Intel's foundry, and the company saw its stock soar in early February on comments from Vice President JD Vance pledging to boost US chipmaking.
