Why Intel Stock Rocketed Higher on Thursday

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Soaring request for AI

Last month, reports surfaced that Apple (NASDAQ: AAPL) had held discussions with Samsung Electronics and Intel to manufacture the processors for its flagship physics devices. At the time, nary of the companies progressive commented connected the reports, leaving investors to wonderment astir their veracity.

Since then, rumors person swirled astir a preliminary statement betwixt Apple and Intel. However, it seems President Trump has present fto the feline retired of the bag. In a lengthy station connected his Truth Social platform, Trump wrote, "The exertion the satellite relies connected was invented successful America. We each retrieve 'Intel Inside.' ... So I decided to assistance Intel due to the fact that we request to plan and physique our chips close present successful America." He went connected to uncover that "Apple has agreed to enactment with Intel to plan and physique its chips successful America."

It's important to enactment that nary of the companies progressive has confirmed Trump's statement, truthful investors whitethorn good beryllium jumping the gun.

Intel has been successful the midst of a betterment that began aft CEO Lip-Bu Tan took the reins aboriginal past year. Central to his turnaround efforts is securing high-profile clients for the company's foundry business. To that end, Intel has been moving feverishly to pull customers, which would validate its efforts. Another unconfirmed study suggests that Alphabet has placed an bid with Intel for 3 cardinal of its Tensor Processing Units (TPUs), which bid and tally artificial quality (AI) models for Google's unreality and AI operations.

Investors person bid up Intel's banal connected the imaginable it could articulation the AI revolution, up 257% truthful acold successful 2026. However, astatine 122 times guardant earnings, the valuation is getting beauteous steep -- particularly since these reports are unconfirmed and Intel isn't profitable.

Should you bargain banal successful Intel close now?

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