President Donald Trump’s aggressive push to make Intel Corp. (NASDAQ:INTC) the champion of American chipmaking has sent the company’s stock soaring, but the resulting “security-first” era isn’t a warning sign for Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM).
Despite production deals with Apple Inc. (NASDAQ:AAPL) and a $43 billion government stake in Intel, analysts argue this is a shift toward a dual-sourcing supply chain—meaning TSM retains its crown as the “indispensable backbone” of global AI, and remains a crucial buy for investors.
Why TSM Remains the ‘Indispensable Backbone‘
Technology strategist Luke Lango, publisher of Innovation Investor, has skin in the game on both sides of this geopolitical divide.
In his portfolio, Lango currently holds a massive 357.20% gain on TSM, having originally bought the stock at $96.42 on Nov. 13, 2023. Simultaneously, he has secured a 162.04% profit on his INTC position, purchased at $50.24 on Feb. 9, 2026, with the stock closing at $131.65 on Wednesday.
Because he profits from both, Lango offers a pragmatic view of Intel’s highly publicized 18A-P risk production node. He notes that while Intel’s technological progress is real, Apple’s targeted 15 to 20 million units on Intel’s architecture is merely a fraction of what TSM handles globally.
“This is not a secular decline for TSM; it’s the beginning of a healthy dual-sourcing dynamic driven by geopolitical necessity,” Lango stated. “I’m bullish on both. Intel is the high-beta national champion trade; TSM remains the indispensable backbone of the entire AI supply chain. You don’t sell your picks and shovels because someone just opened a second mine.”
The ‘Security-First’ Shift And The Dual-Source Reality
Dean Chen, an analyst at the Bitunix exchange, echoes Lango’s assessment. He views Intel’s re-rating as a broader structural shift in the semiconductor industry, moving from an “efficiency-first model toward a security-first model.” However, he stresses that this does not equate to a rapid migration away from Taiwan.
“The more realistic scenario is not a transition from ‘100% TSM’ to ‘100% Intel,’ but rather from a single-source model to a dual-source model,” Chen explained.
“Large technology companies are seeking greater resilience against geopolitical risk, making selective capacity allocation to U.S.-based manufacturing strategically attractive. That is fundamentally different from replacing TSM as the industry’s primary advanced foundry partner.”
TSM’s competitive advantages extend far beyond the leading-edge process. According to Chen, its manufacturing scale, production yields, and deeply integrated advanced packaging capabilities remain extremely difficult for Intel to replicate overnight.
‘Acquisition Americana’ And Risk Of ‘Pricing Perfection’
While TSM’s dominance is secure, Intel’s domestic status has fundamentally changed. The U.S. government’s 9.9% passive stake—now sitting on roughly $43 billion in unrealized gains—represents a massive paradigm shift in American industrial policy.
Lango describes this move as “Acquisition Americana”—the U.S. government buying equity in the assets it needs to win the AI race. “You don’t let a national infrastructure asset go bankrupt, full stop,” Lango noted.
Chen agrees that government ownership reduces long-term viability concerns and creates a “confidence floor” under Intel’s stock. However, both analysts warn that Intel’s massive year-to-date rally brings immediate valuation risks.
“The risk isn’t that the story is fake; it’s that the market is now pricing perfection on a turnaround that is still losing money at the foundry level,” Lango cautioned, adding that investors should prepare for a bumpier ride ahead.
Ultimately, Trump’s semiconductor push has successfully drafted Intel as the U.S. “national champion.” But as the dust settles, the undeniable reality is that the global AI boom is too massive for just one foundry—leaving TSM firmly entrenched as the industry’s indispensable backbone.
How Have TSM And INTC Performed In 2026?
TSM shares have gained 47.15% year-to-date, up 8.98% over the last month, and advanced 100.30% over the year. Benzinga’s Edge Stock Rankings indicate that TSM maintains a strong price trend in the short, long, and medium terms, with a solid quality score.
Meanwhile, INTC was up 256.78% YTD, 9.85% over the month, and 483.81% over the year. Benzinga’s Edge Stock Rankings indicate that INTC maintains a strong price trend across the short, medium, and long terms.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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