Intel stocks received an unexpected boost from JD Vance
Intel (INTC) Early trading on Wednesday saw stock prices rise nearly 3%, extending profits from the day before Vice President JD Vance made bullish comments on domestic chip manufacturing.
“To protect America’s advantages, the Trump administration ensures that the most powerful AI systems will be built in the US using chips designed and manufactured in the US,” Vance said on Tuesday in Paris. He said this in his speech at the summit.
Intel shares rose 6% following the comment. Intel has it A pile of internal problems that have retarded its advantage in chip manufacturing.the company is one of the US’s biggest hopes for domestic AI chip production. Intel is the only large American cutting edge foundry for computer chips. That means that it itself manufactures the chips and Other companies.
The vast majority of the most advanced chips in the AI world are manufactured in Taiwan by TSMC (TSM). Even Intel outsources the production of its most advanced AI chips to its rivals. Samsung in Korea (005930.KS) and TSMC have Expanding operations in the US thanks to financial incentives from the US Chips Actmost of the manufacturing capacity is in our home country.
As Vance said, it is unclear how Trump “guarantees” how US AI systems use US-made chips. Trump defeated the Chips Act on his campaign trail. This is a series of financial incentives for chip companies, passed under President Joe Biden but written under Trump’s first administration, aimed at strengthening domestic production. Trump proposed Appearance in the Joe Rogan Experience In October, he would place tariffs on chip imports, believing that the companies would force them to move to the US.
“(y)ou put a big tariff on the tips coming in. “You don’t have to pay the tariffs. All you have to do is build plants in the US,” he said.
Meanwhile, Intel is far behind TSMC in manufacturing, a current employee at Intel’s Foundry told Yahoo Finance in December There are “many problems” in the latest manufacturing processes of AI chips.
Intel’s long-term commitment to Foundry has also been questioned recently. The company has launched a recent massive push. He was expelled by the board in December I was panicked by the approach that would make investors lose money. Intel is in the process Looking for a new CEO. last week, Intel AI Chief has left A company that assumes the role of Nokia CEO.
Despite two-day profits, Intel’s stock has fallen by more than 50% since last year, with a market capitalization of $91 billion being part of the largest tech company. The company reported a third consecutive year of decline in quarterly revenue in January. Zinsner said Intel Foundry is working to achieve its goal of “providing break-even operating profit” by 2027.