Maybe you haven’t seen, but Intel’s stock is up since Donald Trump was elected. That has provided relief for a good number of people who were sure their stock was going to $10 per share.
I’m guessing the market loves that there might be higher tariffs on semiconductors coming into the country, making Intel more competitive, and that they’re probably getting their CHIPS money soon. People are also probably happy because the CHIPS Act may stay in place under the Republican controlled Senate and the Trump Administration.
Intel’s stock (ticker: INTC) has gone from around $22 to around $26 in five days time. That’s not bad for a company that’s losing billions and has fired some 16,000 people.
Of course Intel’s stock can slide just as fast as it has risen. All it’ll take for a crash is the Trump Administration refusing to continue CHIPS, labelling it a bad deal, and having the Senate tear the law to bits. It’s very possible. Just because Donald Trump has given his lukewarm approval doesn’t mean he has to stick with it. He can change his mind at any time and the Republican Senate will be compliant to his will. And it’s Trump after all… he feels he can scrap any deal at any time the second he decides he doesn’t like it.
I really hope Intel does get its CHIPS Act funding. It is absolutely vital that they get a cash infusion. Intel has spent over $30 billion, I’d argue a bit foolishly, on United States based manufacturing initiatives without receiving a dime from the Federal Government. That is not a good thing. To make American semiconductor manufacturing more economical, to stimulate an ecosystem within the country, direct funding of these companies is absolutely vital.
It’s sad that it took Donald Trump getting elected to raise Intel’s stock price… but I think at this point Intel’s shareholders will take whatever they can get…