Intel (NASDAQ: INTC) Shares rose 4.2% on Wednesday, even as share prices of NVIDIA, super microcomputerand Broadcom They were sagging or flat.
Advanced Micro Devices It also barely managed to buck the bearish trend in IA stock today, with its shares rising 0.97%.
There's a shared reason why Intel and AMD gained ground despite pullbacks in valuations for other high-profile companies with substantial exposure to AI trends.
Why Are Most AI Stocks Falling Today?
In spite of the S&P 500, Nasdaq Compositeand Dow Jones All indices end in green, many AI Stocks We saw significant pullbacks in trading today. The reason for the setback is likely due to another development in the rising tensions and technology-focused power struggle between China and Western powers.
On a visit to the Netherlands today, Chinese President Xi Jinping told Dutch Prime Minister Mark Rutte that attempts to restrict his country's technological rise would not succeed. Xi's comments came on the heels of moves by the United States and the Netherlands to limit China's access to chipmaking equipment. In particular, this meant that ASMLChina's most advanced lithography machines for semiconductor manufacturing could not be exported to China.
Of course, Intel is not immune to these pressures. But Intel investors received information today that is increasing bullish sentiment for the stock despite geopolitical risks. The company's stock price rose thanks to some interesting news suggesting that production of its company's 3 nanometer (nm) processor designs could soon begin to scale rapidly.
Intel's next-generation processors are on the horizon
According to a report published today by the Taiwan Economic Daily, 3nm chip manufacturing could account for more than 20% of the Semiconductor manufacturing in TaiwanThis year's income. Intel, AMD and Apple were cited as the key customers driving demand for 3nm chips.
Production of Intel's new central processing units (CPUs) and graphics processing units (GPUs) appears to be about to begin soon, and the move to the more advanced 3nm node suggests that major performance improvements are on the way. The horizon. Despite some worrying indicators, investors are optimistic about today's news.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool positions and recommends ASML, Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and Intel and recommends the following picks: long $57.50 January 2023 calls on Intel, long $45 January 2025 calls on Intel, and short $47 May 2024 calls on Intel . The Motley Fool has a disclosure policy.
Why Intel Stock Rising Despite Bearish Momentum in Artificial Intelligence (AI) Stocks Today was originally published by The Motley Fool
