Intel (INTC -7.28%) stock posted gains despite big sell-offs for the broader market Thursday. The semiconductor company's share price closed out the day up 2.1% and had been up as much as 8.7% earlier in trading. Meanwhile, the S&P 500 fell 4.9% in the session, and the Nasdaq Composite ended the day down 6%.
NASDAQ: INTC
Key Data Points
Stocks saw huge sell-offs today as investors reacted to wide-ranging new tariffs set to be implemented by the Trump administration. Intel was able to fight through the bearish momentum and end the day in the green thanks to a report that the company could reach a major new deal with Taiwan Semiconductor Manufacturing.
Intel stock rises on potential TSMC deal
The Information reported today that Intel and TSMC had reached a preliminary agreement that could have major implications for the long-term outlook of the U.S. semiconductor industry. According to the report, TSMC is gearing up to take a 20% stake in Intel's chip foundry unit that will see the fabrication business operated as a new joint venture between the two companies. As part of the deal, TSMC would share key trade secrets and help Intel operate its foundry unit in exchange for a substantial equity stake in the business.
What's next for Intel?
While preliminary terms for a foundry business partnership between Intel and TSMC are said to be in place, there's still a good amount of uncertainty about what a partnership between the two companies would look like. On the other hand, TSMC is the clear leader in the chip fabrication space -- and having the company come on board to help its foundry operations would likely be a major positive development for Intel. With demand for foundry services for high-margin artificial intelligence (AI) chips rising, partnering with TSMC could help make Intel a real player in the space.
