Economists have floated the effects of tariffs on the global economy, but investors need to realize that these views are just that—opinions. Opinions based on theory that may or may not play out in the end, so what matters more is what is actually happening in the economy and the markets today. The answer is clear in this case, and that is increased interest for the biggest technology sector names to invest in the United States rather than away from it.

Companies like Apple Inc. NASDAQ: AAPL, Oracle Co. NYSE: ORCL, and others have decided to invest billions in their presence within the United States economy and manufacturing process. Now, economists would have suggested that tariffs might have caused the opposite effect to drive these names further away from dealing with the United States. Just the opposite happened, but one player in particular stands out in importance.

Taiwan Semiconductor Manufacturing NYSE: TSM has announced its latest round of investment in the United States, this time up to $100 billion, on top of its previous $65 billion position. This is important because Taiwan Semiconductor owns over 90% of the semiconductor supply chain, essential to the future of artificial intelligence and essentially all other chips needed in several industries.

Taiwan Semiconductor Stock: Unpriced Potential

Now that shares of Taiwan Semiconductor stock have traded down to 80% of their 52-week high, investors might wonder whether that makes for a potentially good buying opportunity today. While the expansion of their manufacturing presence in the United States is definitely bullish, investors shouldn’t get too carried away just yet.

First, they should check with the markets and Wall Street analysts. For starters, Barclays analysts decided to reiterate their Overweight rating on Taiwan Semiconductor stock as of January 2025, this time also boosting their valuation targets to a high of $255 per share. They call for not only a new 52-week high but also a net rally of 38% from today’s price.

Faced with this upside potential and the considerable outcome from this new investment in the United States, which might bring on additional institutional capital investment, investors can now note clear evidence pointing to the decline and capitulation from short sellers.

Over the past month, up to 9% of Taiwan Semiconductor’s short interest has declined as short sellers decide that the risk is not worth the reward at today’s lows. At the same time that these short sellers abandoned their views, up to $9.8 billion of institutional capital also made its way into the company over the past quarter.

Now that investors see the upside potential in Taiwan Semiconductor after its most recent investment announcement, it is time to understand how this might affect the rest of the chip industry.

NVIDIA’s Redemption Time at $110 Per Share

It’s almost as if the market knew that Taiwan Semiconductor would announce the positive news ahead of time since shares of NVIDIA Co. NASDAQ: NVDA bottomed a day prior at around $110 to $115 per share and are now attempting to recover their ground after selling down to 77% of their 52-week highs.

As of February 2025, analysts at Cantor Fitzgerald also saw NVIDIA stock falling into an Overweight rating. The stock commands a valuation of up to $200 per share, calling for an implied upside potential of 70.5% from where it trades today.

Investors should also remember that what is good for NVIDIA is good for Taiwan Semiconductors, given that they are one of each other’s largest suppliers and consumers.

Despite the recent decline in NVIDIA stock post-earnings, bearish traders found no reason to stick around and keep betting against this leader.

This is why up to 11% of the company’s short interest fell over the past month, giving investors another sign of bearish capitulation.

Intel’s Discount Might Be Erased

After a sluggish year, Intel NASDAQ: INTC stock trades at a dismal 45% of its 52-week high, but that might not last long.

Considering how bullish the market is becoming on the investment shifts in the United States manufacturing of chips and semiconductors, Intel might be next in line for a boost.

And there is more than just sentimental backing for this belief. Investors can look to Wall Street’s earnings per share (EPS) forecasts for $0.16 in the fourth quarter of 2025.

This swing is a massive change from today’s net loss of $0.02 per share, indicating a potential valuation boost in the stock as well.

That might explain why UBS Asset Management decided to boost its holdings in Intel stock by 8.2% as of February 2025, netting its position at $1.3 billion today, or 1.5% ownership in the company.

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Intel Corporation NASDAQ: INTC is at a critical juncture. Reports are coming out that two major industry players are considering Intel’s advanced 18A manufacturing process. This development marks a pivotal test for Intel Foundry Services, the foundation of the company’s IDM 2.0 strategy.

The outcome could determine Intel’s resurgence in the competitive chip manufacturing sector. The market’s immediate and volatile reaction to Intel’s foundry comeback bid caused their stock price to drop by almost 7%. This drop highlights the high stakes and uncertain outcome of the company’s new endeavor. Investors are closely watching, as this moment could redefine Intel’s competitive standing and reshape the semiconductor sector.

Inside Intel 18A: Engineering a Foundry Revolution

Intel’s 18A process has garnered significant attention from investors due to its potential to redefine the company’s position in the semiconductor industry. This process node, Intel’s most advanced yet, is designed to deliver unparalleled performance and efficiency, potentially surpassing industry leaders like Taiwan Semiconductor Manufacturing NYSE: TSM and Samsung OTCMKTS: SSNLF. Intel 18A is more than an incremental advancement because it represents a strategic move by Intel to reclaim technological leadership and outpace competitors.

The Whale Watch: Intel Foundry Test

NVIDIA Corporation NASDAQ: NVDA and Broadcom Inc. NASDAQ: AVGO‘s potential evaluations of Intel’s 18A process could transform the industry. Securing either or both of these companies as clients for Intel Foundry Services would be a monumental validation of Intel’s technology and foundry capabilities. 

These are precisely the kind of “anchor clients” that can catapult a foundry business into the major leagues, lending instant credibility, driving substantial revenue streams, and attracting a cascade of other customers. Landing manufacturing contracts with NVIDIA and Broadcom would signal to the entire industry that Intel is not just a contender but a serious and capable foundry partner for the most demanding, leading-edge chip designs. 

However, it is crucial to maintain perspective. The current reports indicate that NVIDIA and Broadcom are only testing Intel’s 18A process. These evaluations could be preliminary assessments, exploratory probes, or rigorous qualification processes. There is no guarantee that these tests will translate into firm manufacturing commitments or long-term contracts. Whether these evaluations represent genuine steps towards major foundry wins or simply remain as tests will be a critical determinant in gauging the true significance of this news for Intel’s foundry comeback.

Xeon 6 Launch: Internal Innovation and Foundry Focus

Intel continues to drive innovation and advancements in its core product lines, even as external attention is focused on its foundry ambitions. The recent launch of Intel Xeon 6 processors, which deliver exceptional performance and efficiency for diverse workloads, including AI applications, exemplifies this commitment. 

Unveiled at Mobile World Congress 2025, these processors offer substantial performance-per-watt improvements and integrated AI acceleration, making them ideal for data-intensive environments. The Xeon 6 launch signifies that Intel’s innovation engine remains active across its business segments. While the foundry transformation is a crucial long-term strategy, the continuous evolution of core products like Xeon is essential for maintaining Intel’s competitive edge and meeting customer requirements. This internal innovation is vital as Intel pursues its ambitious foundry goals.

The Grueling Path to Intel’s Comeback

Despite the promising developments surrounding 18A and potential customer interest, it’s essential to maintain a realistic perspective on Intel’s foundry prospects. The semiconductor foundry industry is notoriously challenging, with high capital requirements, rapid technological advancements, and established industry leaders. Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics have built substantial leads over decades, creating significant barriers to entry. Intel is playing catch-up, trying to compete with companies that already have established customer relationships, large-scale production, and well-developed ecosystems.

Intel Foundry Services is still in its early stages, and the path to profitability and sustainable market share will likely be long and challenging. While the potential rewards are substantial, investors should recognize that Intel’s foundry ambitions represent a long-term and uncertain endeavor that requires patience, resilience, and exceptional execution in the face of intense competition.

Intel Stock Drop: Opportunity or Omen?

The stock market’s response to recent Intel news has been volatile. Intel shares initially started to climb in the pre-market due to reports of NVIDIA and Broadcom testing 18A. Still, they then experienced a drop at market open, wiping out earlier gains and sending the stock down about 7%. Several factors could contribute to this market uncertainty. Lingering analyst skepticism about Intel’s turnaround and financial difficulties may overshadow the positive 18A developments. Broader market concerns or sector-specific downturns could also put downward pressure on Intel’s stock.

The Intel Foundry Gamble: Patience and Vigilance

For investors contemplating Intel Corporation, the current terrain demands a strategy defined by patience and vigilance. The potential rewards are undeniably substantial. If Intel’s foundry comeback, spearheaded by the 18A process, proves successful and attracts major clients like NVIDIA and Broadcom, the upside for the stock could be significant. Government support through initiatives like the CHIPS Act further bolsters the bull case, potentially creating a favorable policy environment for domestic chip manufacturers like Intel. 

However, the risks remain considerable. Intel faces immense execution hurdles in its foundry transformation, navigating a fiercely competitive market against well-established giants. Intel’s financial metrics continue to reflect underlying challenges, and analyst sentiment, while acknowledging positive developments, remains largely cautious. Therefore, a rush to invest based solely on speculative news or short-term stock fluctuations would be imprudent. 

A measured and strategic approach is recommended over immediate investment. Investors should prioritize the careful monitoring of Intel’s turnaround progress by focusing on tangible metrics. Key indicators include concrete announcements of major IFS customer wins beyond testing phases, verifiable progress in the 18A manufacturing ramp and yield improvements, and sustained improvements in Intel’s financial performance, particularly gross margins and profitability. 

Investors should remain cautiously optimistic and diligently observe Intel’s performance and the ongoing chip wars until metrics show a clear upward trend. The future of Intel and its success in navigating the complexities of the chip wars depends on the execution of its ambitious plans and the unfolding data. Only time will tell if Intel is truly turning the tables.

Before you consider Intel, you’ll want to hear this.

MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Intel wasn’t on the list.

While Intel currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here