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Why Intel (INTC) Stock Is Advancing Today

Intel (INTC) is rising 3% today in the wake of a report which stated that Nvidia (NVDA) and Broadcom (AVGO) are evaluating INTC’s chip-production methods.

The latter development could indicate that NVDA and AVGO are considering having Intel manufacture a significant number of their chips.

A technician soldering components for a semiconductor board.

More Information About Today’s News

Nvidia and Broadcom, which both sell large numbers of AI chips, are testing Intel’s ability to produce complex semiconductors, Reuters reported. More specifically, they are evaluating INTC’s advanced 18A methods of making these products. AMD (AMD) is also reportedly conducting such tests but may be at an earlier stage of doing so.

NVDA and AVGO are attempting to determine if they can sign long-term manufacturing deals with Intel. Under such arrangements, Intel could be paid “hundreds of millions of dollars” to make advanced chips for the two huge semiconductor designers, Reuters stated.

In 2023, NVDA CEO Jensen Huang reported that his firm had tested Intel’s production techniques and had received positive results.

Intel has already made chip-production deals with Amazon (AMZN) and Microsoft (MSFT).

Additional Information About Intel

In recent weeks, it has been reported that Broadcom could be interested in buying Intel’s chip design and marketing units, while there have been indications that Taiwan Semiconductor (TSM) is considering taking a controlling stake in INTC’s chip-making business.

While we acknowledge the potential of INTC, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: The author owns shares of AMZN but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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