AMD and Intel in Talks for Groundbreaking Collaboration
AMD stock and Intel, two titans of the processor market, are in talks for an unprecedented collaboration. Rumours of AMD considering Intel's foundry services have sent shares of both companies soaring, with AMD stock up by over one percent and Intel gaining 6-7 percent.
Currently, AMD relies heavily on Taiwan Semiconductor Manufacturing Company (TSMC) for chip production. However, with Intel actively courting AMD as a customer, the landscape could change significantly. Analysts from Global Equities Research see potential in Intel's 18A technology with backside power delivery, which could attract AMD.
A shift to Intel would disrupt the supply chain and create new dependencies, but it could also benefit AMD's diversification strategy. Both companies face the pressing need to meet the exploding demand for AI processors. According to US media reports from Semafor, Intel is engaged in preliminary negotiations with AMD, with talks set to intensify in October 2025. However, Intel currently lacks the advanced manufacturing technology that AMD needs for its most profitable processors, which could pose a challenge.
The potential partnership between AMD stock and Intel, if successful, would mark a significant shift in the semiconductor industry. While it presents challenges and uncertainties, it also offers opportunities for both companies to strengthen their positions in the face of increasing demand for AI processors.
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