Shares of Intel Corp. surged on Tuesday after Vice President J.D. Vance made bullish comments about semiconductor manufacturing in the U.S. at an artificial-intelligence summit in Paris.

Intel $(INTC)$ shares jumped 6% on Tuesday. Earlier in the day, the stock was the best performer in the S&P 500 SPX. In addition, shares of GlobalFoundries Inc. $(GFS)$ - the U.S.-based chip-manufacturing company spun out of Advanced Micro Devices Inc. $(AMD)$ more than 15 years ago - also jumped over 6%.

"To safeguard America's advantage, the Trump administration will ensure that the most powerful AI systems are built in the U.S. with American-designed-and-manufactured chips," Vance said in Paris.

Intel is the biggest U.S. manufacturer of semiconductors, and it is trying to expand its business into becoming a large foundry to make chips for other companies. It was a recipient of about $8 billion in funding from the U.S. Chips Act under President Joe Biden. While the future of the Chips Act is still unclear under President Trump, the comments by Vance portend less regulation and a similar push toward manufacturing chips in the U.S.

While Intel does not have a major AI chip offering right now - and in fact has cancelled one of its AI chips in development - it hopes to continue to manufacture chips for other companies, especially in the AI arena. It currently has a contract to manufacture Amazon.com Inc.'s $(AMZN)$ Tranium chips, which that company's AWS cloud business uses for AI.

"I think the Chips Act for Intel will continue, but I am less sure for TSMC," said Patrick Moorhead, chief executive and chief analyst at Moor Insights & Strategy, referring to Taiwan Semiconductor Manufacturing Co. Ltd. $(TSM)$ (TW:2330) TSMC has taken over the global crown as the world's largest chip manufacturer. "Trump will be pressuring Nvidia $(NVDA)$, AMD (AMD), Broadcom $(AVGO)$, Marvell (MRVL, ) Apple $(AAPL)$ and Qualcomm $(QCOM)$ to do more with Intel."

GlobalFoundries told analysts on its fourth-quarter earnings call earlier Tuesday that some of its customers and are starting to look for additional, second-source manufacturers, especially after Trump's latest round of tariffs.

"The dialogues we're having with them is a little bit like, 'Well, we're not going to necessarily wait and see,'" GlobalFoundries CEO Thomas Caulfield told analysts. He said some customers are thinking that they need to start becoming more diversified and have the ability to source from different regions. "And I think it's just raising the height of importance of diversification of supply chains with customers," he added.

All of those U.S.-based chip developers - which are selling AI chips, some of which are in broader use than Intel's Gaudi chips for AI - are currently using TSMC for their manufacturing capabilities. TSMC also has a new manufacturing plant in Arizona, and just announced in early January that it began producing advanced chips at a scale of 4 nanometers, which it built via some funding from the U.S. Chips Act as well.

Intel, for its part, is still looking for a new CEO, but the comments by Vance indicate that the Trump administration could be an ally in furthering the strategy set forth by former CEO Pat Gelsinger, who worked hard during his tenure to get the federal government to back chip manufacturing in the U.S. Regulations for semiconductor manufacturing in the U.S. have made building domestic chip plants very costly and time-consuming, partly because of the environmental issues associated with chip making.

Presumably, investors are seeing Vance's comments as an indication that the Trump administration could make it easier for companies like Intel to finish building out some of their U.S. plants with less red tape.