Intel's Stock Surges on Speculation of TSMC Partnership and AI Chip Push

The semiconductor giant's shares climbed over 20% this week as rumors of a U.S.-backed joint venture with TSMC and government support for domestic chip production gain traction.

Intel's stock has risen over 20% this week, driven by reports of potential collaboration with Taiwan Semiconductor Manufacturing Company (TSMC).
Speculation suggests a joint venture where TSMC engineers would assist Intel's 3nm and 2nm fabrication plants, potentially leading to a co-owned entity eligible for CHIPS Act funding.
U.S. Vice President JD Vance emphasized the administration's focus on boosting domestic AI chip production, which analysts believe could benefit Intel.
Intel aims to regain competitiveness with its upcoming 18A process node, with products like Panther Lake and Clearwater Forest set for launch in 2025 and 2026, respectively.
The company faces internal challenges, including recent leadership changes and struggles in the AI market, but new processor launches and favorable policy shifts offer potential growth opportunities.