Intel (INTC +2.10%) stock rocketed higher early in Monday's trading, but it has since given up nearly all of those gains. The company's share price was flat as of 3:20 p.m. ET. Meanwhile, the S&P 500 and the Nasdaq Composite were both up 0.6%. Intel stock had been up as much as 6.9% earlier in the day's trading.
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Intel stock initially posted big gains on geopolitical news
Over the weekend, U.S. military forces carried out an operation to remove Venezuelan President Nicolás Maduro from power. While that may not seem particularly significant for Intel stock, it's a development that could have significant implications for the company's foundry business.
Taiwan Semiconductor Manufacturing currently dominates the chip foundry market, but some investors and analysts are concerned that a potential move by China to exercise greater control over Taiwan could destabilize the industry leader's business. Intel is trying to position itself as a U.S.-based alternative to TSMC, and its stock saw strong bullish momentum early in today's trading before investors reassessed their read on what recent developments in Venezuela could mean for broader geopolitical dynamics.
NASDAQ: INTC
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What's next for Intel?
Intel is a business that remains squarely in turnaround mode. On the design side, the company has been losing market share when it comes to central processing units (CPUs) for PCs and servers. Meanwhile, there's little indication that the company's foundry business has been securing big contract wins for its latest process nodes.
This year looks poised to be a very important one for Intel. If the company's foundry business can win big contracts for artificial intelligence (AI) chips, its stock could see dramatic gains -- but it remains to be seen if the manufacturing unit will deliver.
