Analyst: Intel's partnerships strengthen investor confidence

Intel (INTC) shares are rising on Tuesday after the company announced plans to expand its partnership with Amazon Web Services (AMZN) to manufacture AI chips. In addition, Intel announced plans to spin off its Intel Foundry business into an independent subsidiary.

To talk more about these semiconductor company headlines, the Morning Brief team welcomes Patrick Moorhead, Founder, CEO and Chief Analyst of Moor Insights & Strategy.

“The biggest and most important news from Intel here was long-term. If you can get the leading cloud provider to make not one but two very customized types of chips for you – one in the foundry and one as a custom server chip – then that bodes very well for the future,” Moorhead said.

“And when you add AWS to Microsoft (MSFT) committing to Intel's leading 18A process, that's a very positive view. Even though the foundry spin-off ink isn't quite dry on that yet, it's not official. That could be what many of the customers waiting to make a decision on Intel are waiting for.”

Moorhead goes on to say that the partnerships with Intel “reduce risk” and could even “increase investor confidence” in the long term.

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This article was written by Luke Carberry Mogan.