This article first appeared on GuruFocus.
Oct 2 – Intel Corp. (NASDAQ:INTC) is in preliminary discussions with Advanced Micro Devices Inc. (AMD) about becoming a customer of its chip-manufacturing unit, according to a Wednesday report from Semafor.
The report said it remains unclear what type of products Intel might produce for AMD, as the company’s foundry has not yet developed the capacity to manufacture AMD’s most advanced processors. At present, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is responsible for most of AMD’s chip output.
Talks with AMD come as Intel Chief Executive Lip-Bu Tan seeks new partnerships with major technology firms, financial groups, and policymakers to support the turnaround of the U.S. semiconductor company. Intel has also recently reached agreements with Nvidia Corp. (NASDAQ:NVDA) to co-develop PC and data center chips, with Nvidia taking a $5 billion stake in Intel.
Other developments include Japan’s SoftBank Group completing a $2 billion investment, while the Trump administration earlier acquired a 9.9% holding valued at $8. billion. Intel has also approached Apple Inc. (NASDAQ:AAPL) and other firms about potential equity positions.
Shares of Intel climbed about 7% in Wednesday afternoon trading. The stock has risen nearly 50% in the past month and 77% since the beginning of the year.