In This Story
Intel (INTC+9.39%) stock extended its rally into a fourth day on Thursday morning, surging more than 8% to trade above $24 per share. The legacy chip maker is now up more than 20% so far this year — compared to a dip of about 1.5% to start 2025 for AI chip maker Nvidia (NVDA+2.94%).
The stock rally has come amid speculation about increased U.S. government support for the company and a possible collaboration with TSMC (TSM-2.09%), the Taiwan-based chipmaking giant.
Investors expect Intel to be a key beneficiary of the Trump administration’s effort to boost U.S. chipmaking capacity, as expressed by Vice President J.D. Vance at the AI summit in Paris, Jefferies (JEF+0.08%) analysts wrote in a note.
“In the absence of an ability to convince TSMC to move its process R&D to the US (which so far has not been successful) we believe the US government needs Intel to try and ensure US leadership in semiconductor manufacturing technology,” Jefferies analysts wrote. That would include cooperation with TSMC.
TSMC may send engineers to Intel’s 3 nanometer/2 nanometer fabrication plant to ensure its viability, according to Baird. This fab could be spun off into a new joint venture run by TSMC that would receive U.S. CHIPS Act funding, the investment bank said in a note.