TSMC, which manufactures chips in Taiwan for Nvidia and other Intel competitors, is the gold standard in chip manufacturing. A deal with TSMC that enables Intel's foundries to produce chips on par with those of its rivals could be a game changer for the struggling company.

Also, Intel's earnings forecast for the current quarter is lower than the $0.08 per share that analysts were projecting. The company is expected to report a profit of $0.53 per share in 2025 as per analysts' expectations, but the way it has started the year suggests that it may not be able to get there.