Increased AI Chip Manufacturing in the U.S. Intel has made significant investments in its U.S.-based foundry operations over recent years.

The Trump administration has effectively put a buy rating on Intel’s stock. But that alone won’t get the troubled chip maker out of its jam. Intel’s shares have soared 22% so far this week. The run started after Vice President JD Vance delivered a speech at an AI summit in Paris early Tuesday that touted the White House’s aim to shore up domestic chip production.

The continued momentum for Intel’s stock could force hedge funds to start buying. Plus, Intel’s process technology is getting more respect.

TSMC, which manufactures chips in Taiwan for Nvidia and other Intel competitors, is the gold standard in chip manufacturing. A deal with TSMC that enables Intel's foundries to produce chips on par with those of its rivals could be a game changer for the struggling company.

Intel (INTC) stock extended its rally into a fourth day on Thursday, jumping 7.3% to close at $24.13 per share. The legacy chip maker is now up about 23% so far this year — compared with a gain of just 0.

Intel’s stock has enjoyed a strong three-day rally, fueled by a hospitable political climate and analyst commentary about its CPU business.

Investors are betting that Intel and TSMC will form some kind of joint venture. The Trump administration wants the U.S. to be a leader in advanced chip manufacturing. Intel has struggled thus far in its plans to open its foundry business to outside customers.