Intel Surges on US Chip Production Support
Intel shares soared 5% on Wednesday, extending a 6% gain from Tuesday. The rally stemmed from comments by Vice President JD Vance endorsing increased domestic chip production.
Market Impact
Intel's surge defied the downward trend among other chipmakers like Nvidia and Broadcom, which declined following a high CPI report in January. Despite the gains, Intel remains down over 50% from a year ago, while Nvidia has surged 82%.
Executive Support
Speaking at the 2025 Paris Artificial Intelligence Action Summit, Vance emphasized the importance of American-made chips. "The Trump administration will ensure the most powerful AI systems are built in the US with American-designed and manufactured chips."
Strategic Advantage
Vance's endorsement aligns with Intel's strategy of onshoring semiconductor manufacturing facilities in Ohio and Arizona. The Trump administration views this move as crucial for national security and competition with China.
Government Support
Intel has already received nearly $8 billion from the CHIPS Act. JPMorgan analysts believe Vance's comments indicate continued support, potentially including incentives for chip designers to partner with Intel Foundry.
Conclusion
Intel's strong performance reflects market confidence in its onshoring strategy and the Trump administration's commitment to supporting domestic chip production. The company remains well-positioned to capitalize on future government initiatives and strategic partnerships.