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Intel's stock fell 3.3% after Republican lawmakers criticized the company for testing chipmaking tools from ACM Research, a firm with sanctioned Chinese-linked units, citing national security risks.
ACM Research's stock has gained over 140% in the past year after delivering its first Ultra Lith Baker system and having its tools validated by Intel.
Technology stocks are attempting a pre-bell rebound after a sharp, AI-driven selloff. Investors are weighing the Fed's recent rate cut against concerns over AI profitability and rising costs, with a heavy week of delayed economic data poised to guide the market's next move.
The U.S. administration is shifting its industrial strategy from providing grants to taking direct equity stakes in companies deemed critical to national security. This policy aims to secure domestic supply chains in semiconductors and essential minerals, directly countering reliance on foreign sources.
Intel is in advanced discussions to acquire AI hardware and software firm SambaNova Systems for approximately $1.6 billion. This move is a significant part of its strategy to bolster its position in the competitive AI chip market, though it unfolds amid governance questions and a broader, capital-intensive corporate turnaround.
Intel is testing advanced chipmaking equipment from ACM Research, a U.S. supplier whose Chinese subsidiary is under U.S. sanctions. This move, aimed at advancing its 2027 production goals, invites significant geopolitical and reputational risk amid tense U.S.-China tech relations.