Intel Soars on Domestic AI Chip Focus and TSMC JV Rumors

Intel Corporation (INTC) is poised for a substantial weekly gain of 23%, its highest since 2000. The surge is driven by bullish comments from Vice President JD Vance on domestic AI chip production and speculation of a joint venture with Taiwan Semiconductor Manufacturing Company (TSM).

Domestic Chip Manufacturing Push

Vice President Vance's remarks at the AI Summit in Paris ignited Intel's rally. He emphasized the administration's commitment to fostering domestic chip manufacturing, using "American designed and manufactured chips" for AI. Intel's stock surged 6% following these comments.

Intel's Unique Position

Intel, once the global leader in semiconductors, remains the only American company with the potential to mass-produce AI chips. This advantage stems from its ongoing manufacturing advancements. Although competitors Samsung and TSMC have expanded U.S. operations, their primary production facilities remain abroad.

TSMC Joint Venture Speculation

Reports indicate that the Trump administration is exploring ways to aid Intel's recovery by partnering with TSMC. A Baird analyst speculates that the U.S. may fund a joint venture where TSMC engineers would assist Intel in improving its manufacturing processes.

Wall Street Skepticism

Analysts remain hesitant about such a venture. Bernstein analyst Stacy Rasgon questions why TSMC would willingly share its technology with a potential competitor unless the terms are highly favorable. He suggests that Intel's need for external assistance raises concerns about its ability to produce AI chips independently.

Weekly Gains and Future Outlook

Despite Friday's partial correction, Intel's stock remains up 15% this year. While analysts are cautious about the TSMC joint venture, the focus on domestic chip manufacturing and Intel's unique position support potential growth in the future.