Intel and AMD surge as Wall Street sees a 'changing of the guard' in AI
Intel and AMD shares surged on Wednesday while Nvidia lagged, as analysts said Apple's reported chip-making deal with Intel signals a 'changing of the guard' in AI hardware. Investors are repricing how the AI chip pie may be redistributed.
Intel rose 14 per cent and AMD 9 per cent in New York trading, while Nvidia slipped 1.8 per cent. The catalyst was a report that Apple has reached a preliminary agreement to have chips manufactured at Intel's Arizona fabs. Bloomberg and the Wall Street Journal cautioned the deal is not yet finalised.
Micron also gained 6 per cent, and the optimism spilled into Asian memory names SK Hynix and Samsung. Analysts at Citi and Morgan Stanley wrote of a 'soft changing of the guard in AI infrastructure leadership'. Nvidia stock remains up 22 per cent year to date.
The shift is being amplified by Washington's drive to reshore semiconductor manufacturing. New tax credits announced by the Trump administration on top of CHIPS Act incentives have given Intel an extra push. Investors now treat Nvidia's upcoming earnings as a critical inflection point.
More from North America
Trump prepares to fire FDA chief Makary, sources say
The Trump administration is preparing to dismiss FDA Commissioner Marty Makary after months of disputes over drug approvals, sources told Reuters. A search for his replacement is already under way. Pharmaceutical companies face fresh uncertainty over US approval timelines.
Trump Administration Appeals Second Federal Court Ruling Against Tariffs
The Trump administration has appealed a second federal court decision striking down its tariff regime. US Trade Representative Greer said the White House expects to win on appeal. The legal back-and-forth keeps global supply chains in limbo.
GameStop makes $55.5bn takeover offer for eBay
GameStop CEO Ryan Cohen announced a $55.5 billion takeover offer for eBay, seeing potential to make it a much bigger rival to Amazon.