The stock price of Intel (INTC, Financial) increased by 12% on Thursday morning on the news of US AI chip production expansion and positive market reactions toward its new processing chip releases. The stock market boost derives from extensive government backing combined with a positive industrial response triggered by new domestic semiconductor projects. The company spends considerable funds on local chip manufacturing to support federal preferences for domestic technology practices, while Vice President JD Vance suggests plans to potentially impose tariffs on overseas chip manufacturers, which would strengthen Intel's market advantages in semiconductor fabrication.
The fabrication services for Intel receive increased demand because major technology firms Microsoft (MSFT, Financial) and Amazon (AMZN, Financial) rely on the company to produce customized AI chips. The dependence of Intel's competitors, Nvidia (NVDA, Financial) and AMD (AMD, Financial), on foreign foundries enables Intel to control a bigger share of AI production within the domestic market. The Core Ultra 9 275HX processor from Intel showcases superior performance through a 7% better CPU metric than the Ryzen 9 while surpassing its previous model by 34% in speed and offering a 9% single-thread performance gain. The stock price of $21 shares creates an attractive market value while the analyst target valuation stands at $27, showing possible capital appreciation along with developmental potential.
