Intel Stock Rises On Talk Of Fab Deal With SK Hynix

The U.S. Federal Reserve raised interest rates for the first time in over three years to combat inflation. The decision was unanimous, and more hikes are expected. Wall Street reacted with volatility, with tech shares gaining and energy stocks declining. Chevron and Exxon Mobil fell, while Intel rose on news of potential chip manufacturing talks with SK Hynix. Robinhood shares dropped due to failed crypto legislation and insider trading charges.

Intel (INTC) shares rose 5% after Reuters reported talks with SK Hynix (SKHY) about US memory chip production. SK Hynix shares gained 2.6%. Potential deals include leasing Intel's Ohio facility or forming a joint venture. No decisions have been made, and a deal may face South Korean government opposition due to sensitive technology concerns.

U.S. stocks rose Wednesday, ending a six-session decline, as oil prices eased ahead of the Fed's expected 25-basis-point rate hike. The S&P 500, Nasdaq, and Dow all gained. August retail sales beat expectations, showing economic resilience. Intel shares surged over 5% on potential U.S. chip production talks with SK Hynix.

Intel (INTC) shares rose 4.63% to $101.63 after reports of SK Hynix considering U.S. memory production using Intel's Ohio facilities. CEO Lip-Bu Tan stated Intel can only meet 50% of CPU demand. Intel's Q2 revenue was $16.1B, with Q3 guidance at $15.8B-$16.8B. A potential SK Hynix deal and tight CPU supply are driving investor interest.

SK Hynix is reportedly in talks with Intel to manufacture RAM chips in the U.S., possibly leasing space at Intel's Ohio factory or forming a joint venture. SK Hynix is exploring options to boost global competitiveness but has not finalized plans. The company is already investing $3.8 billion in an Indiana facility for AI chips. The U.S. is pushing for domestic chip production amid a global shortage.

Stocks mixed on Wednesday with Brent crude at $107/barrel, 10-year Treasury below 5%. Fed expected to raise rates by 25bps. Tech stocks gained, with NVDA up 1%, SKHY up 3% on potential Intel deal. Bitcoin near $75,000 after Clarity Act vote failure.