Intel Stock Jumps on Chip Manufacturing Hopes
Intel (INTC) shares surged nearly 3% in premarket trading Wednesday, continuing an upward trend from the previous day. Vice President JD Vance's bullish comments about domestic chip manufacturing fueled this momentum.
Bullish Outlook for US Chip Production
Vance emphasized the importance of US-designed and manufactured chips for safeguarding America's advantage in AI development. These statements follow Intel's earlier 6% gain after Vance's address at the AI Summit in Paris.
Domestic AI Chip Production Hopes
Intel is the only large-scale, leading-edge foundry for computer chips in the US, making it a key player in domestic AI chip production. However, the majority of advanced AI chips are currently manufactured in Taiwan by TSMC.
Unclear Path to US-Made Chips
Vance's assertion that the Trump administration would "ensure" AI systems in the US use US-made chips remains unclear, given Trump's previous opposition to the CHIPS Act and his suggestions of tariffs on chip imports.
Internal Issues at Intel
Despite Intel's potential in domestic chip production, it faces challenges. Former employees have cited issues with the company's AI chip manufacturing process. The company is also searching for a new CEO after Pat Gelsinger's departure.
Stock Performance
Despite the recent gains, Intel stock remains down over 50% from last year. The company has reported consecutive quarterly revenue declines and its foundry business continues to affect overall revenue.
About the Author
This article was written by Laura Bratton, a reporter for Yahoo Finance. You can follow her on Bluesky @laurabratton.bsky.social or email her at [email protected].