Shares of Intel (INTC -0.46%) are jumping on Thursday, up 3.5% as of 2:13 p.m. ET. The jump comes as the S&P 500 (^GSPC 0.22%) was flat and the Nasdaq Composite (^IXIC -0.00%) gained 0.4%.
The chipmaker's stock is still gaining after yesterday's report that Intel is in talks with Advanced Micro Devices (AMD) to add the fellow chipmaker as a customer. Semafor reported, "According to people familiar with the matter," Intel could soon manufacture semiconductors for its sometime rival, though the talks are "early."
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It's been quite a few weeks for Intel
The dominant U.S. chipmaker for years, the company has fallen behind in the age of generative AI. Intel has been through a series of major layoffs and was considering selling off its foundry business, the arm that actually manufactures chips both designed by it and by customers. And now that the U.S. government, Softbank, and Nvidia have all taken equity stakes in the company, Intel's prospects are much more promising.
While this could be a major step in Intel's revival, there is a long road ahead, and it's not clear that Intel won't end up being broken apart. However, I'm cautiously optimistic. For investors comfortable with risk, Intel is a solid pick.
