This Intel News Looks Good On The Surface… Until You See The Full Picture

Every time Intel makes the news, you can practically hear shareholders clenching their teeth… like a guy checking his 401k after the 2008 crash (thanks, Lehman Brothers), praying he won’t be working until he’s 90. For years, Intel has been the Conor McGregor of the semiconductor world… a once-dominant champ who made history, talked a big game, but now spends more time getting knocked out and injured than winning fights. AMD and Nvidia have been delivering haymakers, yet Intel still stumbles back into the ring, insisting it’s got another title run left in the tank.

But today, for once, Intel’s stock is actually up. Not because it pulled off some stunning turnaround… no, this is more of a “someone might be willing to take this problem off our hands” kind of rally. According to reports, Taiwan Semiconductor Manufacturing Company (TSMC) has approached Nvidia, AMD, and Broadcom about forming a joint venture to take over Intel’s foundry business. Yes, the same foundry business that Intel spent billions trying to make competitive, only to end up with a P&L sheet so ugly that streaking at an NFL game would be less humiliating.

TSMC, which already dominates contract chip manufacturing, reportedly wouldn’t own more than 50% of the joint venture. But let’s all just be honest here, this is a controlled demolition. If this deal happens, Intel wouldn’t be “partnering” with the biggest chip companies in the world… it would be renting out its foundry business in a desperate bid to stay relevant.

Intel’s foundry division lost $11.6 billion last year alone while the company’s total net loss hit $18.8 billion in 2024. And to make matters worse, the competition is thriving while it flails. Nvidia is gonna Nvidia, Broadcom is stacking wins with enterprise networking, and AMD took Intel’s lunch money years ago and hasn’t looked back.

Intel’s manufacturing business was supposed to be a cornerstone of the Biden administration’s CHIPS Act, a multi-billion-dollar push to increase U.S. semiconductor production. But Intel’s execution has been about as smooth as a country backroad. The company’s massive Ohio chip plant, initially expected to open in 2025, is now delayed until 2030… a five-year delay that might as well be a century in chip manufacturing timelines. On the other hand, assuming Trump doesn’t sabotage it, TSMC, which is also benefiting from the CHIPS Act, has committed $100 billion to build new U.S. facilities, including a $65 billion Arizona expansion that is light-years ahead of Intel’s efforts.

Intel’s stock jumped 4% on the JV news, but before you take your pants off and start running around the neighborhood in celebration, just remember… this is a stock that’s still down 54% over the past year and only 1.6% up year to date.

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Stock.News has positions in Intel.