Intel CEO Lip-Bu Tan has reportedly spoken to Apple’s Tim Cook and TSMC’s C.C. Wei regarding a partnership or joint venture.
Intel Corp. (INTC) stock closed at a new 52-week high on Thursday as traders bid up the stock on hopes that it would receive more bailout money as the chipmaker plots its turnaround.
On Stocktwits, Intel stock was the top-trending equity ticker as of early Friday. The 24-hour message volume change on the stream was 64% leading up to late Thursday.
Retail sentiment toward the stock was ‘extremely bullish’ (82/100) as of early Friday, improving from the bullish mood that prevailed a day ago. The message volume on the stream also perked up to ‘extremely high’ levels.
Rumors regarding investment from multiple parties are circulating rapidly. A bullish user speculated that Japanese investment is forthcoming, basing their expectation on an announcement by the Japanese Finance Ministry that it would establish an investment facility at a state-owned bank to support a $550 billion investment in the U.S.
Another user noted the rumors surrounding Apple (AAPL) and TSMC (TSM) investments, but felt these were mere rumors that may not materialize anytime soon. While noting that TSMC is several generations ahead of Intel, they said Apple has its own x86 processors.
Some expressed worries about whether they were late to the Intel party.
A user sees the headline regarding the Trump administration mulling more stringent domestic chip manufacturing norms as bullish for Intel, which has its own chip foundry.
Following SoftBank’s (SFTBY) $2 billion bet in Intel, the U.S. government and Nvidia also agreed to invest in the chipmaker. Earlier this week, a Bloomberg report stated that Intel was in discussions with Apple and several other companies regarding potential investments.
A Wall Street Journal report identified one of the parties Intel approached as TSMC (TSM). Intel CEO Lip-Bu Tan has reportedly spoken to Apple’s Tim Cook and TSMC’s C.C. Wei regarding a partnership or joint venture.
In a note published Thursday, tech venture capitalist Gene Munster said he sees the logic of Apple investing in Intel as weak. “Apple’s most advanced chips are currently manufactured at scale by TSMC, whose process technology is two to three years ahead of Intel,” he said, adding that “From a product and manufacturing standpoint, Intel does not move Apple’s roadmap forward.”
The only reason why Apple might consider investing in Intel is “political,” Munster said. With the U.S. government viewing Intel as a national asset and encouraging partnerships to strengthen domestic production, Apple could use an investment to signal support for U.S. manufacturing, he added.
Intel stock has added nearly 70% this year.
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