Intel stock surged after partnership with Amazon for custom chips, but long-term uncertainty remains.

From Nasdaq.: 2024-09-21 07:33:00

Intel stock soared after announcing a partnership with Amazon for custom chip designs for AWS. Intel shares are up from $19 to $21. Amazon and Intel will co-invest in chip design with Amazon spending $7.8 billion in Ohio near Intel’s new plant. Intel aims to compete with Nvidia in AI and build its foundry business. It is currently unprofitable, burning over $10 billion in free cash flow annually. While the partnership is positive, Intel’s long-term success is uncertain, making it a risky investment. The Stock Advisor service does not recommend investing in Intel at this time.



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