Intel shares jumped on Wednesday after a tough summer. Since late June, the stock had dropped over 30% as investors grew concerned that the company might not be able to support its high valuation, especially with signs that AI growth is slowing.
The stock’s rebound followed news of a possible deal with South Korean memory chipmaker SK Hynix. This arrangement could benefit both companies.
Reuters, quoting sources familiar with the talks, said the deal might involve SK Hynix leasing space at Intel’s planned chip factory in Ohio or creating a joint venture with Intel and major cloud computing companies. The discussions are still at an early stage, and the South Korean government could oppose the agreement. Both Intel and SK Hynix did not respond to requests for comment.
Both companies’ stocks went up after the news. Intel shares rose almost 5% before the market opened, and SK Hynix’s American depositary receipts also increased.
If the partnership happens, Intel would get back into the memory chip market, which has been one of the best-performing parts of the AI sector this year. Intel used to be a big name in memory but left the business in 2020 when it sold its flash-memory unit to SK Hynix. For SK Hynix, working with Intel would help it expand its manufacturing in the U.S. as it faces strong demand from major American cloud computing customers.
