Intel climbs on report SK Hynix in talks with co to make memory chips in US
INTC•Intel shares rise on SK Hynix deal report
Intel INTC.O shares gained 5.2% to $102.15 in pre-market trading following a Reuters report that SK Hynix 000660.KS, SKHY.O is in talks with the company for a deal to make memory chips in the U.S.
SKHY was up 3% at $180.13.
Under one scenario, SK Hynix could lease part of Intel's planned Ohio facility, while another could see a venture with Intel and cloud firms, sources told Reuters.
A potential hurdle for any deal is possible opposition from the South Korean government, as advanced memory technologies are considered sensitive, the sources said.
Intel stock recently traded at 49x expected earnings, versus a five-year average forward P/E of 36, suggesting it might be overvalued, according to LSEG data.
The stock has rallied about 163.3% year to date, far outpacing an 11.8% rise in the Nasdaq .IXIC.
