Intel's stock demonstrated significant momentum following Vice President JD Vance's comments about domestic chip manufacturing at the AI Action Summit in Paris. The company's shares surged over 10% to $21.79 in Tuesday trading, marking its largest two-day gain since March 2020. The stock movement was accompanied by heavy trading volume, with notable options activity including more than 400,000 calls trading, led by Friday-expiring $21 calls.
The market reaction appears tied to Vance's pledge that the Trump administration would ensure advanced AI systems are built with American-designed and manufactured chips. This could present a significant opportunity for Intel, which has been working to establish itself as an alternative to Taiwan's TSMC in chip manufacturing. Currently, TSMC dominates the market, producing about 90% of the world's most advanced chips. While Intel's previous attempts to compete in the foundry services space have seen limited success, the potential for government support in domestic chip manufacturing could strengthen its position in the market.
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Create account Try a demo Download mobile app Download mobile appThe stock price is on its way to retest 100-day SMA at $21.88.
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