Intel Soars on the Stock Market: US AI Chip Plan Pushes Stock Up | What is hardware | Computer hardware parts and functions | Parts of computer and their functions | Turtles AI

Intel shares surge 7 percent after Vice Chairman JD Vance’s statements on U.S. production of AI chips, reinforcing the company’s strategic role. The initiative aims to consolidate the U.S. technological advantage in the AI sector.

Key points:

• Intel benefits from Vice President JD Vance’s statements on AI.
• US aims to produce its own chips to maintain technological lead
• Advanced semiconductor manufacturing is crucial for leadership in AI
• Intel’s 18A node could represent a breakthrough in the industry

Vice President JD Vance’s announcement during the Paris AI Summit gave a significant boost to Intel’s shares, which surged 7 percent, the second highest since 2025. In his speech, Vance stressed the importance of domestic production of advanced semiconductors, which are essential to the future of AI, stating that the administration will ensure that AI chips are designed and manufactured within the United States. Most processors for this sector are currently produced in Taiwan by Taiwan Semiconductor Manufacturing Company (TSMC), while NVIDIA dominates the market in designing GPUs for AI. However, Intel represents the only U.S. manufacturer that can compete in this area, making it the natural beneficiary of the semiconductor industry’s reshoring policies.

Vance emphasized that AI is not a threat to jobs but an accelerator of productivity and innovation, promising that America will continue to lead this important industry. He also reiterated the importance of the computing power needed to develop the entire AI ecosystem, which includes transformative hardware, algorithms and applications. To consolidate the global leadership position, he assured that the Trump administration will commit to ensuring domestic production of the most advanced chips, a move that immediately triggered a wave of confidence among investors, translating into a rise in Intel’s stock. The company has already benefited from substantial federal funds through the CHIPS and Science Act, a bipartisan initiative launched under the previous Biden administration to strengthen the U.S. semiconductor industry at a particularly sensitive time for Intel, struggling with operational difficulties and high manufacturing costs.

Although Intel is strategically positioned to take advantage of demand for U.S.-manufactured AI chips, its foundry division has not yet started large-scale production, delaying the ability to immediately fulfill new orders. In the meantime, TSMC continues its technology development and plans to launch mass production with its advanced 2-nanometer technology in 2025, the same year in which Intel aims to operationalize its 18A node, critical to its revitalization strategy. The success of this project and the stabilization of its foundry business will be crucial to the company’s future. Following the sudden departure of former CEO Patrick Gelsinger in 2024, the new management has maintained a cautious profile, avoiding revealing details about a possible reorganization of the manufacturing division. Over the year, Intel shares have risen 5 percent, with the recent rise representing the second most significant, following a 9 percent increase marked in January.

Investor confidence demonstrates how central the market considers the ability of the United States to strengthen its independence in advanced semiconductor manufacturing.