Intel's Stock is Rising. Here's the Latest Rescue Hope

Intel Corp. investors are pinning their hopes on a potential joint venture that could involve some of the biggest names in the semiconductor industry taking stakes in the company’s struggling foundry business.

‍

According to a report on Wednesday, Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) has approached Nvidia Corp., Advanced Micro Devices Inc. (AMD), and Broadcom Inc. to explore a partnership. The proposed deal would see TSMC managing Intel’s foundry operations while keeping its ownership stake below 50%. Qualcomm Inc. was also contacted regarding the potential joint venture, the report noted.

‍

Following the news, Intel’s stock surged nearly 8% in premarket trading on Wednesday. This development adds a new chapter to the ongoing efforts to revive the company’s fortunes, as Intel’s shares have experienced significant volatility in recent months.

‍

Over the past year, Intel’s stock has plummeted by more than 50%, weighed down by substantial losses in its manufacturing segment and its failure to capitalize on the booming artificial-intelligence market. However, in 2025, Intel has outpaced the broader S&P 500 index, largely due to investor optimism about external support. Year-to-date, Intel’s shares are down approximately 1%, compared to a 5% decline for the S&P 500.

‍

Representatives from Intel, TSMC, Nvidia, AMD, Broadcom, and Qualcomm did not immediately respond to MarketWatch’s request for comment. Reuters indicated that discussions between TSMC and the other companies are still in the early stages.

‍

Investors have been increasingly receptive to the idea of external intervention to stabilize Intel’s struggling design and manufacturing divisions. Earlier this year, there was speculation that Broadcom might express interest in acquiring Intel’s design business or that TSMC could assume control of certain Intel chip-making facilities. However, enthusiasm for such possibilities waned after Broadcom’s CEO dismissed the idea during the company’s recent earnings call. Additionally, TSMC recently committed to investing $100 billion in U.S.-based chip production, reducing the likelihood of a direct acquisition of Intel assets.

‍

A complicating factor for Intel is political uncertainty surrounding the Chips Act. This Biden-era program provides grants to support domestic semiconductor manufacturing.

‍

Former President Donald Trump, who is seeking re-election, has publicly opposed the initiative, raising concerns about future funding. Despite this, Intel remains a unique player in the U.S. chip industry due to its integrated model—it not only designs chips but also operates manufacturing facilities to produce them. According to Reuters, this dual role makes Intel a key interest for the Trump administration, which may view the company’s success as critical for maintaining U.S. leadership in semiconductor manufacturing.

‍

While the proposed joint venture offers a potential lifeline for Intel, there are significant obstacles to overcome. U.S. regulators may be hesitant to allow substantial foreign involvement in a strategically important domestic industry. This concern is particularly relevant given TSMC’s headquarters in Taiwan—a region with ongoing geopolitical tensions.

‍

Additionally, Intel and TSMC rely on different manufacturing processes, which could pose technical and operational challenges if the two companies attempt to integrate their operations.

‍

Despite these hurdles, the possibility of a collaborative effort signals that major industry players recognize both the challenges and opportunities in Intel’s foundry business. If successful, the joint venture could provide Intel with the resources and expertise needed to regain competitiveness in the rapidly evolving semiconductor market. However, the outcome of these early-stage discussions remains uncertain, and investors will be watching closely for further developments.

‍

Intel’s ability to navigate these challenges is critical as it faces increasing pressure from competitors who have gained ground in areas like artificial intelligence and advanced chip manufacturing. Whether through a joint venture or other strategic partnerships, external support may be key to reversing Intel’s recent struggles and restoring investor confidence.

‍