Intel Corp (NASDAQ:INTC, ETR:INL) shares gained more than 6% in afternoon trading on Wednesday following reports that Intel is in early discussions to manufacture semiconductors for AMD, according to news website Semafor.
If true, it would be a big vote of confidence for Intel as AMD is the company’s largest competitor for x86-based chips for PCs and servers.
AMD currently manufactures its chips with Taiwan Semiconductor (TSMC).
Last week, Bloomberg reported that Intel had reached out in hopes of securing an investment from Apple Inc, citing people familiar with the matter.
Nvidia also announced recently that it would make a $5 billion investment in Intel and plans to work with company to produce chips for personal computers and data centers.
In August, the US government acquired about 10% of Intel’s equity as part of its efforts to reinvigorate domestic semiconductor production.