Intel (NASDAQ: INTC) stock saw a 4. 2% increase on Wednesday, even as share prices for Nvidia, Super Micro Computer, and Broadcom remained flat or declined. There is a shared reason behind the upward trajectory of both Intel and Advanced Micro Devices (AMD) despite other high-profile companies in the AI industry experiencing valuation pullbacks. The reason for the pullbacks in AI stocks today can be attributed to rising tensions and the tech-centered power struggle between China and Western countries. Chinese president Xi Jinping, during his visit to the Netherlands, conveyed that attempts to restrict China's technological rise would not succeed. This statement came after the US and the Netherlands limited China's access to chip fabrication equipment. Notably, this restriction prevented the export of ASML's most advanced lithography machines for semiconductor manufacturing to China. Although Intel is not immune to these pressures, investors received positive news today that increased their bullish sentiment towards the stock, despite the geopolitical risks.

The company's share price rose after reports suggested that production of its 3nm processor designs could begin scaling rapidly in the near future. According to a report from Taiwan Economic Daily, the fabrication of 3nm chips is expected to contribute more than 20% of Taiwan Semiconductor Manufacturing's revenue this year. Intel, AMD, and Apple were mentioned as key customers driving demand for these chips. The imminent production of Intel's new central processing units (CPUs) and graphics processing units (GPUs), utilizing the more advanced 3nm node, indicates significant performance improvements on the horizon. This positive news outweighed other concerning indicators, leading investors to have a bullish outlook today. Please note: The information provided above does not constitute investment advice. This article was originally published by The Motley Fool.