From Nasdaq, Inc.: 2024-09-17 19:00:00

Tech stocks, including Intel and Amazon, rally ahead of Fed rate cut. Intel’s stock up 8% today, rebounding from recent lows. Amazon shares rise 2% in early trading. Partnership includes developing custom AI chips using Intel’s technology to enhance AWS services. Intel hopes to regain market share and improve financial performance through collaboration.

Intel and Amazon’s partnership aims to boost AWS cloud services with custom AI chips. Intel, facing competition, sees this as an opportunity to improve its position in the semiconductor market. Despite financial concerns, Intel has significant cash reserves, while Amazon thrives with over $89 billion in cash. Both stocks hold Zacks Rank #3 (Hold).

Amazon and Intel’s partnership may lead to future growth opportunities. Amazon expects high EPS growth and a rise in total sales in the next fiscal years. Intel’s split into an independent subsidiary is expected to enhance efficiency in the foundry business. The collaboration should benefit both companies and investors in the long term.



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