<div id="readability-page-1"><div>Intel’s stock jumped over 7% Wednesday after Semafor reported the company is in early talks to make chips for longtime rival AMD in its foundry business. AMD shares also ticked higher, up more than 1% on Wednesday - and is up nearly 4% in Thursday trade.<img height="398" width="500" src="https://imageproxy.pbkrs.com/https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/Screenshot%202025-10-01%20at%2020.30.44.jpg/query-aXRvaz1RWm1hQmIzVg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/Screenshot%202025-10-01%20at%2020.30.44.jpg/query-aXRvaz1RWm1hQmIzVg"/>Such a deal would be a major boost for Intel’s relatively new manufacturing arm, which has struggled to attract big customers and has been one of the key reasons Wall Street has had trouble getting behind Intel as an investment.Analysts say landing AMD would not only validate Intel’s technology but also “send a signal to other chip companies” that the firm can handle large-scale production. AMD, for its part, would be entrusting critical chipmaking to its direct competitor—an unusual move given both companies battle in the x86 PC and server markets.<figure><img height="266" src="https://imageproxy.pbkrs.com/https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/G2QUcJUXkAASAvR_80.jpg/query-aXRvaz0yT1I4RVNPYw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="500" original-src="https://imageproxy.pbkrs.com/https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/G2QUcJUXkAASAvR_80.jpg/query-aXRvaz0yT1I4RVNPYw"/><figcaption>Illustration via TechPowerUp</figcaption></figure>It remains unclear how much manufacturing AMD would shift from TSMC, its current supplier. Both Intel and AMD declined to comment.Intel “currently lacks the technology to produce AMD’s most advanced, profitable chips,” Semaforwrote, meaning any potential deal may cover only part of AMD’s manufacturing, and “it is possible that no agreement will be reached.” Some reports suggest the arrangement could even involve a direct investment by AMD, similar to deals struck with other companies. Semafor has also reported Intel is in talks for backing from Apple.AsTom's Hardwarenotes;<blockquote>In the past several weeks, Intel has seen a flurry of activity and investments. The United States announced a 9.9% ownership stake in Intel, while Softbank bought $2 billion worth of shares. Alongside Nvidia, Intel announced new x86 chips using Nvidia graphics technology, with the graphics giant also purchasing $5 billion in Intel shares. There have also been reports that Intel and Apple have been exploring ways to work together.Such a partnership with AMD could validate former Intel CEO Pat Gelsinger's vision. He had previously expressed interest in building chips for all of the world's major tech companies, including long-time rival AMD. It's unknown if AMD is considering a stock purchase similar to Nvidia.AMD would be a major get for Intel, the latter of which has talked to many companies in a search for foundry customers. Current Intel CEO Lip-Bu Tan has suggested the company could stop offering its 18A node entirely if there isn't enough demand for it.</blockquote>The news comes as Intel seeks a turnaround under CEO Lip-Bu Tan. Recent backing from the U.S. government, Nvidia, and SoftBank has been seen as a vote of confidence, though Nvidia stopped short of committing to Intel’s foundry.Intel, once dominant in laptop chips, has been “left flat-footed” by Nvidia’s rapid rise in AI.Intel shares have surged nearly 77% in 2025. Still, doubts persist. As Bernstein’s Stacy Rasgon quipped: “If you aren’t sure they’ll come, don’t build it,&#34;according to IBD.</div>Loading recommendations...</div>

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Intel's stock rose over 7% after reports of early talks to manufacture chips for rival AMD, which also saw a slight increase in its shares. This potential deal could enhance Intel's foundry business, which has struggled to attract clients. Analysts suggest that securing AMD would validate Intel's technology and signal its capability for large-scale production. However, Intel currently lacks the technology for AMD's most advanced chips, and any agreement may only cover part of AMD's manufacturing needs. Both companies declined to comment on the discussions.

- Intel's stock rose over 7% after reports of early talks to manufacture chips for AMD, which also saw a slight increase in its shares.  
- A deal could significantly enhance Intel's foundry business, which has struggled to attract major clients, while also signaling its production capabilities to other companies.  
- However, uncertainties remain regarding the extent of AMD's potential shift from TSMC and whether an agreement will be finalized, as Intel currently lacks the technology for AMD's most advanced chips.

Intel Reportedly In Early Stage Talks To Make Chips For AMD