Intel, GFS Stocks Surge as VP Vance Backs U.S.-Made AI Chips

Intel (NASDAQ:INTC) and GlobalFoundries (NASDAQ:GFS) stocks surged on Tuesday, May 12, 2025, following Vice President J.D. Vance's announcement that the U.S. government will support domestic AI chip manufacturing. Vance stated that the Trump administration will take steps to ensure that the most powerful AI systems are built in the U.S. with American-designed and -manufactured chips. This news has sparked optimism among investors, as both Intel and GFS are expected to benefit from this initiative.

Intel's stock price jumped nearly 7% to about $21, while GFS shares rose nearly 10% to around $15. Both companies have been struggling in recent months, with Intel's stock losing more than half its value over the past 12 months. However, the U.S. government's support for domestic AI chip manufacturing could provide a much-needed boost for these semiconductor giants.

Intel's Q4 2024 results reflect a company in transition, with revenue of $14.3 billion, down 7% year-over-year (YoY), but exceeding expectations in gross margin and EPS guidance. The full-year picture was more stable, with revenue of $53.1 billion, down 2% YoY, as the company aggressively reshaped its portfolio and doubled down on AI, foundry independence, and semiconductor manufacturing leadership.

Key strategic moves in 2024, such as the creation of an independent Intel Foundry unit and securing $7.86 billion in funding from the U.S. CHIPS Act, reinforce Intel's commitment to domestic semiconductor leadership and AI innovation. These moves position Intel to capitalize on the growing demand for AI chips and the U.S. government's support.



Intel's AI and PC market strategy, focusing on 100 million AI PCs by 2025 and expansion in AI accelerators and high-performance computing, aligns with the growing demand for AI chips. Additionally, Intel's strategic alignment with Dell, Microsoft, and AMD on x86 ecosystem standardization further strengthens its position in the AI chip market.

GlobalFoundries, on the other hand, is expected to benefit from increased demand for U.S.-made AI chips, as it is one of the few companies capable of manufacturing advanced chips domestically. GFS has been expanding its manufacturing capabilities and has recently announced plans to build a new fab in Texas. This new fab is expected to produce advanced AI chips, further bolstering GFS's position in the market.



In conclusion, the U.S. government's support for domestic AI chip manufacturing has sparked optimism among investors, leading to a surge in Intel and GFS stock prices. Both companies are well-positioned to capitalize on the growing demand for AI chips and the U.S. government's support. Intel's strategic moves and GFS's expanding manufacturing capabilities make them strong contenders in the AI chip market. However, investors should remain cautious and monitor the companies' progress closely, as the AI chip market is highly competitive and subject to rapid technological changes.

Important note: Investors are reminded to do their due diligence and not rely on the information provided as financial advice. Consider this article as supplementing your required research. Please always apply independent thinking.