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Intel Corp (INTC) Stock Has Risen 11.3% in a Week – Here’s Why

Simon Mugo trader
Updated 12 Sep 2023

The Intel Corporation (NASDAQ: INTC) stock price has risen 11.25% during the past week amid a slew of news from the company, including its planned $300 million deal with Tower Semiconductor. The company had previously announced cancelling its $5.4 billion acquisition of Tower last month. test


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The deal with Tower Semiconductor comes after Intel had to cancel its attempted $5.4 billion acquisition of Tower due to intense regulatory scrutiny of the deal that would have created a giant player in the semiconductor industry. The deal will see Intel provide Tower with foundry services and 300mm chip manufacturing capacity.

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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY

The deal gives Tower a new capacity corridor of “over 600,000 photo layers per month” to meet an expected increase in demand for 300mm chips. The deal also allows Intel to manufacture Tower’s 65-nanometer power management BCD (bipolar-CMOS-DMOS) flows.

Stuart Pann, Intel’s SVP and GM of Intel Foundry Services, said: “We launched Intel Foundry Services with a long-term view of delivering the world’s first open system foundry that brings together a secure, sustainable, and resilient supply chain with the best of Intel and our ecosystem. We’re thrilled that Tower sees the unique value we provide and chose us to open their 300mm U.S. capacity corridor.”

However, this was not the only exciting news from Intel in the past week. A few days ago, the company revealed that it had gotten a large prepayment order from an anonymous customer for its 18A node, considered a 1.8nm chip manufacturing process. 

Intel reiterated its ambition to become the industry leader in the global semiconductor chip manufacturing process, a title it lost to Taiwan Semiconductors (TSMC) a few years back. By manufacturing 1.8nm chips, Intel will be ahead of both TSMC and Samsung, working on 2nm chips. 

Intel expects to overtake TSMC by 2025 and reclaim its former glory as the world leader in the global microchips industry. However, the deluge of news from Intel did not stop there as the company announced it had invested substantially in the upcoming Arm IPO. 

The company wants to keep working with Arm in future despite the two firms’ chip architecture competing in the global markets. 

Intel stock price. 

The Intel stock price has risen 11.25% in the past week and is up 41.17% for the year.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading