For Intel, Friday’s share price decline was the most significant since October 16, 2002, and for AMD, the daily share gain was the most noticeable since March 3, 1975. The main factor that influenced investor sentiment was the statement of the head of Intel about the delay in the development of 7-nm technology for a period of six to twelve months, as well as the company’s intentions to start more actively using the services of third-party manufacturers.

The latter is quite rightly taken to mean the Taiwanese company TSMC, although the Intel management did not directly talk about this. TSMC’s American depositary receipts managed to rise in price by 12% on Friday, reflecting the potential increase in the company’s revenue from cooperation with Intel. Cowen experts, meanwhile, do not share the optimism of individual investors.

Firstly, TSMC is now already loaded with orders, if we talk about advanced lithographic processes, namely Intel will need them. The exclusion of Huawei from the number of TSMC customers, which occurs due to the US sanctions, not only did not force the company to lower its revenue forecast but also did not prevent it from increasing the number of capital expenditures for the current year. This suggests that customers are queuing up for TSMC services, the disposal of even the largest of them allows you to quickly redistribute quotas among others without sacrificing revenue.

Secondly, TSMC is unlikely to undertake to build additional production facilities for Intel’s needs, fearing that after several years of cooperation, it will want to return future products to its own conveyor.

Other analysts were even more categorical in their statements. Susquehanna officials are convinced that Intel will not be able to catch up with TSMC in technology over the next five years. The odds are not that it will happen at all in the future. Experts believe that Intel should sell its enterprises to TSMC, especially since they are already located mainly in the United States, where the American authorities are systematically dragging the Taiwanese manufacturer.

From a political point of view, Intel’s recognition of its increased dependence on foreign contractors is also a blow to the reputation of the United States, which has tried to maintain its status as a technology leader for the past 50 years. The company in the second quarter received the lowest profit rate in 11 years – 53.3%. The news about Intel’s intentions to reduce the share of self-produced products caused a decline in the stock prices of suppliers of lithographic equipment and materials for the production of processors: securities of KLA Corp, Applied Materials, and ASML fell in price by 2-6%. NVIDIA shares have become more expensive by a percentage point, which has already surpassed Intel in terms of capitalization, but now the gap has increased to $ 35 billion.