(VOR News) – On its fourth trading day, Intel’s stock (INTC +10.01%) rose by over 8%, hitting $24 a share before continuing to rise for the rest of the day.

What followed was a continuation of the upward trend. Following this movement, the tendency that had been gaining traction continued, and then there was another movement. At the time of the incident, which happened early on Thursday morning, the company’s stock was trading at about $24 per share.

This happened at the exact moment the incident happened. Even if Nvidia (NVDA+3.10%), a manufacturer of artificial intelligence chips, has lost 1.5% since the start of 2025, the legacy chip company has already grown by more than 20% this year. This is in spite of the 1.5% decline that Nvidia has suffered.

Over twenty percent of Intel’s profits are due to this.

Even if the company has been operating less, it is significant to highlight that the following result has happened.

There have been suggestions that a potential agreement with TSMC (TSM-2.50%), a well-known chip maker with headquarters in Taiwan, is being considered, along with reports that the company is getting more money from the US government.

When each of these things are taken into account, the stock price has increased. It is logical to infer that these two assumptions are related to one other since they are both linked to the stock price’s increasing trajectory.

Furthermore, both of these hypotheses have supported the overall upward trend, which has been fuelled by the stock price’s propensity to rise.

Analysts at Jefferies predict that Intel would make a substantial profit from the Trump administration’s initiatives to boost American chip manufacturing capacity (JEF-0.51%). According to these analysts’ conclusions, Intel stands to gain a great deal by putting these policies into place.

According to the projections made by Jefferies specialists, investors believe Intel will make a substantial profit from this venture. This scheme is being implemented for the benefit of the Trump administration, which is the one that stands to benefit from its implementation.

Vice President J.D. Vance expressed his delight about the prospect of making this choice at a meeting held in Paris to conduct research on artificial intelligence. The purpose of the meeting was to do artificial intelligence research.

“In order to try and ensure that the United States remains at the forefront of semiconductor manufacturing technology,” the analysts at Jefferies asserted in their assessment of the state of the economy, they are trying to maintain their position at the forefront of the industry.

“The United States government deserves Intel.”

“In the absence of an ability to convince TSMC to relocate its process R&D to the United States (which has not been successful thus far), we believe that Intel is a good investment for the United States government.”

While we will evaluate the possibility of working with TSMC, we will only do so if we stay within the parameters of this conversation.

To ensure that the plant can function in a configuration that is both environmentally friendly and capable of producing high-quality products, Baird has stated that Texas Semiconductor Manufacturing Company (TSMC) may send engineers to Intel’s fabrication factory, which operates at 3 nanometres and 2 nanometres.

The letter states that there is a chance this manufacturing facility will be divided into a separate joint venture that runs separately from the others. The United States of America’s CHIPS Act would provide funding for this joint venture, which would be run by TSMC.

The deal stated that TSMC would oversee the joint venture’s management. TSMC would continue to have control over this joint venture for the remainder of its existence due to its nature. The country would offer assistance in the form of financial support for this cooperative initiative.

SOURCE: QZ