Stock Of The Day: Intel Sees 2-day Spike Of 12% After Vance's Us Chipmaking Pledge

Intel employees in clean room "bunny suits" working at Intel's D1X factory in Hillsboro, Oregon.

Credit: Walden Kirsch/Intel Corporation

• Intel shares rose as much as 5% Wednesday, following a 6% gain Tuesday.
• The gains follow comments from Vice President JD Vance on boosting American chip production.
• "The Trump administration will ensure that the most powerful AI systems are built in the US," Vance said.

The move: Intel shares gained as much as 5% on Wednesday, building on top of their 6% gain on Tuesday. Intel stock is up 13% so far this week.

The move bucked the trend in other chip makers like Nvidia and Broadcom, which were down after the hot January CPI reading. Still, Intel stock is down over 50% in the last year, compared to Nvidia's gain of 82% in that time.

The chart:

Why: At the 2025 Paris Artificial Intelligence Action Summit, Vice President JD Vance voiced support for more chip manufacturing to take place in the US.

"The Trump administration will ensure that the most powerful AI systems are built in the US with American-designed and manufactured chips."

What it means: The key part of Vance's quote is not only American-designed chips, which plays to the Nvidia's of the world, but also American manufactured chips, which are right up Intel's alley.

In 2022, Intel dove headfirst into the chip fabrication world, committing about $20 billion to build new chip manufacturing factories in Ohio and Arizona.

The Trump administration's comments boost confidence in Intel's strategy of onshoring semiconductor manufacturing, which historically has been outsourced to Taiwan Semiconductor and Samsung.

The Trump administration sees the onshoring of chip manufacturing capabilities as a strategic imperative for the country, especially considering America's fierce competition with China. This should bode well for future government support of Intel. In November, Intel was already awarded nearly $8 billion from the CHIPS Act.

What the pros are saying: "We took this as another positive indication of Intel's importance in the broader US geopolitical strategy," analysts at JPMorgan said of JD Vance's comments.

"We thus see Intel's foundry initiative as carrying sufficient geopolitical weight that the US government will not only keep CHIPS Act support going to it, but also perhaps provide additional backing to the company," JPMorgan said in a Wednesday note.

"One of the simplest ways to do this is to encourage chip designers to partner with Intel Foundry. We wouldn't be surprised if the Trump Administration leans more aggressively on potential foundry customers than the prior Administration did."