Intel Stock: Shares Surge on AWS Deal and Cost Cuts

Intel's stock experienced a significant boost, with shares climbing over 5% on NASDAQ. This surge was primarily driven by the announcement of a multi-billion dollar contract with Amazon Web Services, Intel's largest cloud customer. Simultaneously, CEO Pat Gelsinger unveiled plans for extensive cost-cutting measures, aiming to slash $10 billion in expenses to enhance the company's profitability. Despite the positive market reaction, analysts expressed concerns about Intel's long-term strategy, noting that while cost reductions are being implemented, a clear vision for future growth and market share recovery remains elusive.

European Expansion Plans Delayed

The semiconductor giant's cost-saving initiatives have led to a two-year postponement of its planned chip factories in Germany and Poland, temporarily slowing Intel's European expansion. However, the company remains committed to its €30 billion German project, with local authorities establishing a task force to maintain progress during the delay. This strategic shift, coupled with the potential spin-off of Intel's foundry division and substantial U.S. government support, has fueled investor optimism despite ongoing debates about the effectiveness of chip sector subsidies in achieving broader geopolitical objectives.