Intel is in early talks with AMD to manufacture chips for it in its foundry business, according to a report from Semafor.

Intel shares rose as much as 6% on the news at one point during trading on Wednesday. AMD shares were flat.

If AMD were to start manufacturing chips with Intel, it would be a significant win for the company’s foundry business, which is currently seeking big customers. Analysts say that a big customer would allow Intel Foundry to confidently invest in developing its manufacturing technology and would send a signal to other chip companies that Intel can handle their business.

It would also signal that AMD, which competes with Intel in x86-based chips for PCs and servers, is confident doing its manufacturing with its biggest competitor.

It is unclear how much manufacturing AMD would do with Intel, according to the report by Semafor’s Rohan Goswami. AMD currently manufactures its chips with TSMC.

In recent weeks, Intel has added several significant investors, including the U.S. government, Nvidia, and Softbank, which were all seen as votes of confidence as the company attempts to turn around its fortunes under new CEO Lip-Bu Tan. Intel shares are up nearly 77% so far in 2025 as investors gain more confidence in the chipmaker.

However, Nvidia did not commit to using Intel’s foundry.

A representative for Intel declined to comment.

“AMD does not comment on rumor or speculation,” an AMD spokeperson said.