Intel stock jumped Wednesday on a report that the semiconductor giant is in early talks with AMD about having the company’s longtime rival sign up as a foundry business customer.
Intel (INTC) rallied more than 5% to 35.24 in afternoon trades on a Semafor report that the company is considering making chips for AMD (AMD). AMD was up a fraction.
Such an agreement would be a big win for Intel, which has been trying to expand its chip manufacturing business.
Intel’s fairly new foundry division has struggled to gain attraction. The new business was supposed to be a new growth path for the company, which has struggled to compete with rivals led by AMD and Nvidia.
The company’s chip manufacturing business has had such a disappointing performance, some analysts have even raised questions about the decision to launch it.
“If you aren’t sure they’ll come, don’t build it,” Bernstein Research analyst Stacy Rasgon quipped in a research note in July.
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