Intel Stock Rallies on Domestic AI Chip Production Push and TSMC Venture Rumors

Highlights

* Intel (INTC) stock poised for a 23% weekly gain, its largest since 2000.
* Rally fueled by Vice President JD Vance's comments on domestic AI chip production.
* Rumors of a potential joint venture between Intel and TSMC further boosted the stock.

Domestic AI Chip Manufacturing Focus

* Vice President Vance emphasized ensuring American-made chips for US AI advancements.
* Intel, as the only American company capable of large-scale AI chip manufacturing, benefits from this focus.
* US-China tensions and Taiwan's vulnerability have prompted the US to prioritize domestic chip production.

TSMC Joint Venture Rumors

* Reports emerged this week of the Trump administration considering a joint venture between TSMC and Intel.
* The venture would involve TSMC aiding Intel in manufacturing improvements and viability.
* However, market analysts express skepticism about the likelihood of TSMC sharing its proprietary technology with a potential rival.

Market Reaction

* Intel stock surged 6% following Vice President Vance's comments.
* The joint venture rumors further boosted the rally, but the stock pared its gains slightly on Friday.
* Year-to-date, Intel stock has gained over 15%.