's (NASDAQ: INTC) stock popped 1% in mid-day trading on July 17, hitting as high as $37.16 per share before ending the day at $34.46. That growth alone isn't particularly noteworthy. However, what is significant is that while Intel's shares were rising, Nvidia's and AMD's stock prices tumbled 7% and 10%, respectively.
These three companies are in steep competition in the chip market, each unveiling new artificial intelligence (AI) accelerators this year. Nvidia and AMD have far outperformed Intel in stock growth since last July. However, this shift in market results from rising tensions between the U.S. and China, which could threaten access to Taiwan Semiconductor Manufacturing Company's foundry services.
Nvidia and AMD are heavily reliant on TSMC's manufacturing plants. Intel similarly uses the Taiwan-based company's services. However, it is also building chip fabs throughout the U.S., which could mitigate issues with China in the coming years and make it the world's leading chip manufacturer.
Source Fool.com