Intel stock pops on news company is in early talks to add AMD as a customer

Core Viewpoint - Intel is in early discussions with AMD to manufacture chips for AMD in its foundry business, which could significantly enhance Intel's foundry operations and market position [1][2]. Group 1: Intel's Foundry Business - Engaging AMD as a customer would be a major win for Intel's foundry business, which is actively seeking large clients to bolster its manufacturing capabilities [2]. - A partnership with AMD would allow Intel Foundry to invest confidently in developing its manufacturing technology and signal to other chip companies that Intel can manage their production needs [2]. Group 2: AMD's Position - If AMD begins manufacturing chips with Intel, it would indicate AMD's confidence in collaborating with its primary competitor in the x86-based chip market for PCs and servers [3]. - Currently, AMD manufactures its chips with TSMC, and the extent of potential manufacturing with Intel remains unclear [3]. Group 3: Investor Confidence - Recently, Intel has attracted significant investors, including the U.S. government, Nvidia, and Softbank, reflecting growing confidence in the company's turnaround efforts under new CEO Lip-Bu Tan [4]. - Intel's shares have increased nearly 77% in 2025, indicating rising investor confidence in the chipmaker [4]. - However, Nvidia has not committed to utilizing Intel's foundry services [4].