Intel Shares Surge 50% in Month, U.S. Stake Valued at $16B Amid AMD Talks

Intel's stock price has surged over 50% in the past month, reaching its highest level in 18 months under CEO Lip Bu-Tan, reflecting renewed investor confidence after a challenging fiscal 2024. This rally has significantly increased the value of the U.S. government's 10% stake in Intel, acquired during the Trump administration's $8.9 billion investment, now valued at approximately $16 billion. Key drivers of this surge include Nvidia's $5 billion investment for data center collaboration and early-stage talks with AMD about potentially using Intel's foundry services, marking a notable partnership between long-time rivals. While financial indicators suggest Intel faces some operational challenges and potential overvaluation, the company is expanding into communications infrastructure, automotive, and IoT markets, aiming to leverage its manufacturing capabilities as an outsourced foundry. The potential AMD partnership, alongside interest from AI-focused firms like Tenstorrent, could bolster Intel's competitiveness in contract chipmaking, a domain traditionally dominated by Taiwan Semiconductor. Overall, Intel's strategic moves and backing from both private investors and the U.S. government are pivotal to its ongoing resurgence in the semiconductor industry.