Intel trading overtakes Nvidia as White House pushes for TSMC deal
One of the big stories of the week has been the upsurge in Intel — both in terms of trading activity and prices. It’s up almost 25% this week despite a drop Friday.
The jump came after indications that the Trump administration was pushing to use Intel, which received billions under the Biden administration’s CHIPS Act, as its vehicle for ensuring US AI chip production.
That story is consistent with one reported Friday by Bloomberg, in which reporters wrote:
“Taiwan Semiconductor Manufacturing Co. is considering taking a controlling stake in Intel Corp.’s factories at the request of Trump administration officials, a person familiar with the matter said, as the president looks to boost American manufacturing and maintain US leadership in critical technologies.
Trump’s team raised the idea of a deal between the two companies in recent meetings with officials from the Taiwanese chipmaker, the person said, and TSMC was receptive. It’s unclear whether Intel is open to a transaction.”
This follows an earlier report saying that TSMC is considering building an advanced packaging plant in the US amid pressure from Trump.
Any talk of a deal might be preliminary to fanciful. See, for instance, Trump’s first-term push to bring a Foxconn manufacturing plant to Wisconsin along with $10 billion of investment and 13,000 jobs.
But the market seems happy to buy the Intel rumor here.
The once iconic American chip company was the top traded stock, in terms of share volumes, in the S&P 500 on Friday, beating even the trading monster that is Nvidia. (Though, of course, the total value of Nvidia shares is far higher.)
That story is consistent with one reported Friday by Bloomberg, in which reporters wrote:
“Taiwan Semiconductor Manufacturing Co. is considering taking a controlling stake in Intel Corp.’s factories at the request of Trump administration officials, a person familiar with the matter said, as the president looks to boost American manufacturing and maintain US leadership in critical technologies.
Trump’s team raised the idea of a deal between the two companies in recent meetings with officials from the Taiwanese chipmaker, the person said, and TSMC was receptive. It’s unclear whether Intel is open to a transaction.”
This follows an earlier report saying that TSMC is considering building an advanced packaging plant in the US amid pressure from Trump.
Any talk of a deal might be preliminary to fanciful. See, for instance, Trump’s first-term push to bring a Foxconn manufacturing plant to Wisconsin along with $10 billion of investment and 13,000 jobs.
But the market seems happy to buy the Intel rumor here.
The once iconic American chip company was the top traded stock, in terms of share volumes, in the S&P 500 on Friday, beating even the trading monster that is Nvidia. (Though, of course, the total value of Nvidia shares is far higher.)
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