Intel and AMD Stocks Surge as SK Hynix Talks Lift Semiconductor Sector

Semiconductor stocks rallied broadly on Wednesday, led by Intel, after Reuters reported that South Korean memory giant SK Hynix is in talks with Intel about manufacturing memory chips on US soil for the first time. Intel shares rose approximately 5%, with the stock reaching $101.85 in premarket trading, leading Nasdaq-100 futures. SK Hynix's Nasdaq-listed shares climbed about 2%, while rivals Micron and Samsung edged modestly higher. The broader chip complex, including Nvidia, AMD, Sandisk, and Western Digital, also moved higher on the news.

Under one scenario discussed in the Reuters report, SK Hynix would lease part of Intel's planned manufacturing facility in Ohio, a development that would mark the first time the South Korean company has produced memory chips in the United States. SK Hynix said it had not finalized any specific plans, confirming only that it is exploring various options. The potential deal would represent a significant win for Intel's foundry ambitions, as the company has been actively seeking marquee manufacturing customers. It also aligns with the Trump administration's push for more domestically produced semiconductors.

AMD shares also climbed on Wednesday, supported by upbeat long-term forecasts for chip demand and positive sentiment around the company's EPYC processor ramp. The Nasdaq and S&P 500 advanced in tandem, with investors also positioning ahead of an imminent Federal Reserve interest rate decision.