SK hynix is reportedly in exploratory talks to manufacture memory chips in the United States, potentially by leasing part of an Intel Ohio fab or forming a joint venture with Intel and hyperscalers, though no binding deal has been announced.

The discussions are preliminary with no decisions yet, and investor sentiment has already turned positive in premarket trading on the news.

The broader semiconductor rally supports these talks, with memory and AI demand underpinning gains in peers like AMD and Qualcomm.

Analysts note some AI-spending concerns, but Bank of America’s Vivek Arya says evidence of a near-term slowdown is limited and cites strong demand, long-term contracts, and pricing as reasons for continued momentum.

AMD gained roughly 4% after Piper Sandler reaffirmed an Overweight stance with a $600 price target, pointing to progress on product ramps and resilient demand.

Overall market backdrop supported the move higher, with the Nasdaq and S&P 500 posting gains in premarket trading, offsetting earlier AI-related jitters in memory names.

Rising US manufacturing costs and the need to satisfy government expectations for domestic production complicate any move, even as AI-driven demand pressures push for more localized supply.

Intel has enjoyed stock strength on AI demand and incentives, though its foundry business posted a large Q2 loss after adjustments.

Any deal would hinge on economics, incentives, customer commitments, supply security, and political considerations as economic, governmental, and customer needs converge.

A potential external anchor for Intel Foundry could validate the domestic manufacturing thesis and attract customers like NVIDIA and SoftBank if Q2 growth sustains.