One of the cornerstones of President Donald Trump's campaign was a promise to bring more manufacturing jobs back to the U.S. from overseas. In particular, the new administration has been focused on bolstering domestic technology innovation as the artificial intelligence (AI) revolution intensifies.
By now, it's clear that semiconductors are among the most important pieces of the AI puzzle. Suppliers such as Nvidia, Advanced Micro Devices, and Broadcom have been leading the charge for high-performance graphics processing units (GPUs) and networking equipment for data centers. However, these companies rely heavily on foundry solutions from Taiwan Semiconductor Manufacturing.
Over the last few years, Taiwan Semi has emerged as the leading player in the foundry realm, acquiring over 60% market share. As American competitors, particularly Intel (INTC 5.41%), continue to lag behind Taiwan Semi, it begs the question of what steps the U.S. chipmaker could take.
Below, I'll explore what could jump-start Intel's business in an increasingly competitive AI environment and assess whether the stock is a good opportunity right now.
Why Intel is the chip stock to watch now
Earlier this month, Vice President JD Vance attended an AI summit in Paris with other world leaders and high-profile technology moguls. At the event, French President Emmanuel Macron asked Vance to share some thoughts on AI as it pertains to regulations, safety, economic impact, job creation, and more.
The vice president was quite clear on his administration's vision for the future of AI. He echoed the words of President Trump, stating that this administration is focused on a "pro-worker growth path" to help create more jobs in the AI industry. He went on to call America the leader in AI development and said that this administration "plans to keep it that way."
While the vice president's words could simply be surface-level commentary, I can't help but think he might be hinting at something potentially larger.
NASDAQ: INTC
Key Data Points
Talking the talk and walking the walk?
Just days after Vance's speech at the Paris summit, the rumor mill started swirling around (wait for it!)...Intel. According to Baird research analyst Tristan Gerra, the U.S. Government could be working on a deal that involves Intel and Taiwan Semi forming a joint venture. The thought is that Intel would partner with TSMC in an effort to bring more advanced engineering capabilities to its foundry division.
In theory, a deal like this could completely reinvent Intel. The company has fallen so far behind Taiwan Semi that it's hard to imagine how it could realistically catch up in the chip manufacturing market. With all this said, there are some more important details to analyze before pouring into Intel stock.
Image source: Getty Images.
Is Intel stock a good buy right now?
As of this writing, Intel stock has gained 30% in 2025 -- trouncing the returns generated by the S&P 500 and Nasdaq Composite. Interestingly, the entirety of Intel's gains this year took place right after Feb. 10. This is the time during which VP Vance attended the AI summit and subsequent rumors of an Intel-TSMC joint venture popped up.
I'll admit that I find the idea of an alliance between Intel and TSMC quite intriguing. But with that said, it is still just a rumor. Moreover, a multitude of media outlets have been publishing different opinions on a potential deal and how the current administration might view it.
I believe Intel's stock has already appreciated considerably, purely based on the narrative that it finally unlocked a way to jump-start its chip manufacturing capabilities. While I do think a joint venture of some sort could be transformative for Intel, investors should understand that these deals are complex and take time to bear fruit -- if they happen at all.
For now, I'm cautiously optimistic about Intel, but its incredible stock return in 2025 appears to be driven by an exciting narrative and not tied to the fundamentals of the underlying business. For these reasons, I would not chase the momentum right now.
