Intel shares jump 8% on reports of exploratory talks with SK Hynix
Investors rallied behind the chipmaker following a Reuters report suggesting a potential US-based memory chip arrangement, despite the lack of official confirmation from either firm.
Intel shares closed up approximately 8 per cent on Thursday, driven by reports that the company has held exploratory talks with South Korean memory giant SK Hynix regarding a potential deal to produce memory chips in the United States. The market reaction was swift, with SK Hynix shares also rising nearly 5 per cent in the same session, signalling strong investor interest in a potential partnership within the lucrative AI hardware sector.
According to a report by Reuters, the proposed arrangement could involve SK Hynix leasing part of Intel’s new Ohio mega-campus. Alternatively, the two firms might form a joint venture with cloud computing companies that require significant memory capacity. However, neither Intel nor SK Hynix has officially confirmed the details of the talks or the specific structure of the deal, leaving the arrangement in a state of uncertainty.
The surge in Intel’s share price comes against a backdrop of positive sentiment from Wall Street analysts. Northland upgraded the stock to Outperform earlier this month, while Tigress lifted its price target to US$145 this week, both citing the company’s foundry turnaround. Memory chips are considered one of the most profitable segments of the artificial intelligence trade, a sector that previously propelled Intel to all-time highs earlier this year.
Despite the optimism, the timeline for any tangible benefits remains distant. Intel’s Ohio mega-campus is not expected to be finished until 2030 at the earliest. Furthermore, the potential partner, SK Hynix, was reported to be denying similar rumours of a deal just two months ago, adding a layer of complexity to the current speculation.
For investors, the 8 per cent rise highlights the market’s eagerness for any news related to memory chip production, even when the underlying deal is still in the exploratory stage. The move underscores the premium placed on AI-related assets, where even unconfirmed reports of strategic partnerships can trigger significant price movements.
