AI chip stocks, including Intel, surged after Amazon’s $200 billion spending forecast. Intel and Amazon collaborate on custom CPUs for AI applications. Reuters reports Intel and AMD are raising server CPU prices by up to 10% in China. Intel’s stock is up 5.5%, nearing multi-year highs after a recent pullback post-earnings.

The traditional server CPU market is revitalized as cloud providers invest in AI accelerators and traditional chips. Amazon and Intel’s partnership involves custom Xeon 6 chips, likely benefiting from Amazon’s massive 2026 spending plan. Intel and AMD are facing high demand and price hikes in China due to shortages.

Intel’s rally could continue with increased supply output and margins on server CPU chips. New Panther Lake CPU production in Arizona could boost revenue and profits in the second half of 2026. Consider investing in Intel for potential growth, but also explore other top stock picks from the Motley Fool’s Stock Advisor team.

Read more at Nasdaq: Why Intel Was Rallying Today