Intel spikes on reports of potential AMD manufacturing deal

Investing.com -- Intel shares are trading nearly 6% higher midday on Wednesday following a report by the Semafor that the company is in early-stage talks to add AMD as a customer at its factories. AMD shares are also trading over 1% higher on the news.

Intel has recently secured investment and public support from several major players, including the White House, Nvidia, and SoftBank. The company is also reumored to be in discussions with Apple.

AMD’s current chips are primarily manufactured by Taiwan’s TSMC. According to the Semafor, one challenge of any potential deal is that Intel currently lacks the technology to produce AMD’s most advanced and profitable chips.

The scope of any manufacturing shift to Intel remains unclear, as does whether AMD would make a direct investment similar to deals made by other companies. No agreement is certain at this point in negotiations, the report added.

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