Intel (INTC -9.20%) stock climbed 4.2% Wednesday, even as share prices for Nvidia, Super Micro Computer, and Broadcom were down or flat.

Advanced Micro Devices also barely managed to buck the bearish trend for AI stocks today, with shares up 0.97%.

There's a shared reason why Intel and AMD gained ground despite valuation pullbacks for other high-profile companies with substantial exposure to artificial intelligence trends.

Why are most AI stocks falling today?

Despite the S&P 500, Nasdaq Composite, and Dow Jones indexes all ending in the green, many AI stocks saw significant pullbacks in today's trading. The reason for the pullback likely stems from another development in the rise of tensions and the tech-centered power struggle between China and Western powers.

In a visit to the Netherlands today, Chinese president Xi Jinping told Dutch Prime Minister Mark Rutte attempts to restrict his country's technological rise would not be successful. Xi's comments came on the heels of moves from the U.S. and the Netherlands to limit China's access to chip fabrication equipment. Most notably, this meant that ASML's most advanced lithography machines for the manufacturing of semiconductors could not be exported to China.

Of course, Intel isn't immune to these pressures. But Intel investors received information today that is increasing bullish sentiment for the stock despite geopolitical risks. The company's share price rose thanks to some exciting news that suggests production of its company's 3 nanometer (nm) processor designs could soon begin scaling rapidly.

Intel's next-generation processors are on the horizon

According to a report published by Taiwan Economic Daily today, the fabrication of 3nm chips could make up more than 20% of Taiwan Semiconductor Manufacturing's revenue this year. Intel, AMD, and Apple were cited as the key customers driving demand for 3nm chips.

Production of Intel's new central processing units (CPUs) and graphics processing units (GPUs) looks poised to begin soon, and the shift to the more advanced 3nm node suggests significant performance improvements are on the horizon. Despite some otherwise concerning indicators, investors are bullish on the news today.