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Intel (INTC) was poised to have its most successful week in over 40 years on Friday morning, but the rally fizzled out.
Stocks fell by 2%. That still had the stock up 23.6% since the start of the week—a solid return, though less than the near 30% weekly gain seen earlier Friday, which would have marked the stock's best five-day stretch since 1987.
Intel was one of the worst-performing stocks in the S&P 500 last year, when shares lost 60% of their value and the storied American chipmaker was dropped from the blue-chip Dow. It has failed to stay ahead of competitors when it comes to developing AI chips, and invested millions in an unproven turnaround plan.
The shares of Intel foundry, which makes chips for other companies, may benefit if Trump forces tech firms to manufacture their technology domestically. Intel Foundry is a huge bet that former CEO Pat Gelsinger made. It lost $13 Billion last year.
This week, speculation arose that Intel could partner with Taiwan Semiconductor Manufacturing Co. TSM (the world’s biggest chip maker and major Intel Foundry competition) to manufacture chips in the U.S.A. and profit from Trump’s and Biden’s protectionist policy.
Citi analysts stated on Thursday they are not hopeful about the potential benefits. Intel, according to them, would find it difficult to adapt to TSMC’s processes and work arrangements. “We still believe Intel should exit foundry,” They concluded.
TSMC was only the most recent in a long line of rumored mergers. Qualcomm (QCOM), a semiconductor company, reportedly approached Intel to discuss a possible takeover last year. Broadcom analysts speculated Broadcom could be interested.
Update—February 14, 2025: This article has been updated to reflect Intel's closing price Friday.
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