INTC Stock Slips Overnight: AMD Reaffirms TSMC Ties Amid Intel Foundry Buzz — But Keeps Supplier Options Open

• AMD reaffirmed TSMC as its primary wafer supplier, while remaining open to competing manufacturing and packaging technologies.
• Northland upgraded Intel with a $120 target, implying a 15% upside, citing turnaround progress and foundry opportunities.
• AMD said AI demand exceeded initial expectations, with tight supply persisting as it targets doubling its data center business in 2027.

Shares of Intel Corporation (INTC) slipped 0.4% overnight heading into Wednesday as Advanced Micro Devices (AMD) backed Taiwan Semiconductor Manufacturing Company (TSM) when asked about Intel Foundry, while keeping alternative suppliers in play.

INTC stock jumped 9% on Tuesday to close at $104.47, its highest level in nearly a month. The rally marked its best day in more than a month and the fourth straight session of gains.

AMD Backs TSMC As Primary Supplier

Speaking at Citigroup’s Global TMT Conference on Tuesday, AMD CFO Jean Hu said that the company’s relationship with TSMC extends beyond manufacturing to joint technology development. “If you look at a lot of our technology, we actually co-develop it with TSMC,” Hu said when asked whether AMD would consider Intel as a foundry partner.

She said supplier decisions depend on product quality, advanced process technology and 3D packaging capabilities, adding that AMD is diversifying geographically with TSMC. “You should expect us to continue to view TSMC as our primary supplier on the wafer side,” Hu said.

However, Matt Ramsay, AMD’s head of financial strategy and investor relations, said the company would also assess competing technologies. “Anything that’s advanced packaging or anything that’s advanced wafers, we’re going to evaluate and due diligence on technology from every vendor in the market,” he said. “For the foreseeable future, the partnership we have with TSMC is going to be a significant one and will continue to be for a long time.”

AMD AI Demand Outpaces Supply Plans

The comments come as AMD works to secure capacity for its expanding AI business. Hu said constraints span wafers, advanced packaging, high-bandwidth memory and other components needed for complete Helios rack systems. “I think overall supply is very tight,” she said.

AMD expects initial MI450 production revenue in the third quarter, followed by a “very significant step up” in the fourth quarter and another increase in early 2027. Hu said 2027 demand and volumes had exceeded initial expectations. Its three anchor AI customers — Meta, OpenAI and Anthropic — had also provided forecasts above those anticipated at the start of their partnerships.

“We need to continue to expand the supply,” she said. “We can use more supplies to make sure we meet the customer’s demand.” AMD expects its data center business to double next year, with server CPU growth exceeding 70% despite ongoing supply constraints.

What Sparked Intel Foundry Speculation?

UBS said last month that tight capacity for TSMC’s CoWoS advanced packaging could steer customers including AMD, Google, Apple and SpaceX toward Intel’s EMIB-T packaging tech, with potential volume in 2027.

AMD has meanwhile deepened its existing supply relationships. In May, the company committed more than $10 billion across Taiwan’s AI ecosystem and began producing Venice EPYC processors on TSMC’s 2-nanometer process, with later production also planned in Arizona.

Intel Foundry Outlook Drives Northland Upgrade 

In other news, Northland upgraded Intel to ‘Outperform’ from ‘Market Perform’ with a $120 price target, implying about a 15% upside from current levels. The firm cited “material progress” in Intel’s turnaround and benefits from server CPU shortages.

Northland also expects Intel’s Terafab partnership with Elon Musk’s SpaceX and Tesla, to boost its foundry business and provide the scale needed to expand its process tech footprint. Pricing prospects also added to the backdrop for Tuesday’s rally. Intel is reportedly considering raising PC CPU prices by 10% in October and could discontinue lower-margin Small Core products.

Intel And ASML Advance High NA EUV

Separately, Intel Foundry and ASML Holding N.V. highlighted progress in deploying High-Numerical-Aperture extreme ultraviolet lithography, or High NA EUV. More than one million wafers have been processed across early tool certification and testing, research and development, and volume production. 

Commercial production includes selected layers on a subset of Intel Core Ultra Series 3 processors, code-named Panther Lake. The companies said overlay accuracy, throughput, and availability were meeting Intel Foundry’s expectations. Intel 18A products using High NA for selected layers also delivered performance that met or exceeded comparable layers patterned with ASML’s NXE platform.

How Do Retail Traders Feel About INTC?

On Stocktwits, retail sentiment for INTC jumped to ‘bullish’ from ‘neutral’ levels a week ago amid a 982% surge in 24-hour message volumes.

One user said, “$INTC INTEL is 2-4 years ahead of the competition… How can you not be Bullish?”

Another user said, “$INTC too much fear as hourly is now oversold!  This is working to break $110.  No bullish momentum stops suddenly half way.  Get a clue shorts!  Hope you get some shares!”

INTC stock has jumped 323% over the past year. 

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