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Why Intel Stock Is Still Rising Despite Current Bearish Momentum for Artificial Intelligence (AI) Stocks


Intel (NASDAQ: INTC) Although shares rose 4.2% on Wednesday Nvidia, super microcomputerand Broadcom Decline or remain flat.

Advanced Micro Devices Artificial intelligence stocks also managed to buck the trend today, rising 0.97%.

There’s a common reason why Intel and AMD are still making headway despite a pullback in valuations for a host of other high-profile companies focused on the AI ‚Äč‚Äčtrend.

Why Are Most Artificial Intelligence Stocks Falling Today?

although S&P 500 Index, Nasdaq Indexand Dow Jones Indexes all end in green, a lot Artificial Intelligence Stocks There was a sharp pullback in trading today. The reason for the pullback may stem from rising tensions and another development in the tech-centric power struggle between China and Western powers.

During a visit to the Netherlands today, Chinese President Xi Jinping told Dutch Prime Minister Mark Rutte that attempts to limit the Netherlands’ technological rise will not succeed. Xi’s comments followed moves by the United States and the Netherlands to restrict China’s access to chip manufacturing equipment.Most notably, this means ASMLThe most advanced photolithography machines used in semiconductor manufacturing cannot be exported to China.

Of course, Intel are not immune to these pressuresBut Intel investors received information today that suggests bullish sentiment on the stock is growing despite geopolitical risks. The company’s shares rose on some exciting news that production of its 3-nanometer (nm) processor designs may soon begin scaling up rapidly.

Intel’s next generation processor is coming soon

According to a report published today by Taiwan Economic Daily, the manufacturing of 3nm wafers may account for more than 20% British SemiconductorThis year’s income.Intel, AMD and apple It is considered to be the main customer driving demand for 3nm chips.

Production of Intel’s new central processing units (CPUs) and graphics processing units (GPUs) appears to be about to begin, and the shift to the more advanced 3nm node suggests significant performance improvements are on the horizon. Despite some other worrying indicators, investors remain bullish on today’s news.

Should you invest $1,000 in Intel right now?

Before buying Intel stock, consider the following factors:

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Keith Noonan There are no positions for the above stocks. The Motley Fool owns and recommends ASML, Advanced Micro Devices, Apple, Nvidia and TSMC. The Motley Fool recommends Broadcom and Intel and recommends the following options: long January 2023 $57.50 Intel calls, long January 2025 $45 Intel calls, and short Intel May 2024 $47 calls. disclosure policy.

Why Intel Stock Is Still Rising Despite Current Bearish Momentum for Artificial Intelligence (AI) Stocks Originally published by The Motley Fool



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