The once mighty semiconductor heavyweight Intel may be standing at the foothills of a major revival to its former glory days, after President Trump floated the idea of using funds from the CHIPS Act in and become the largest stakeholder.
Trump administration reportedly plans to take approximately 10% stake in Intel, using up to $11 billion in US governmental subsidies to do so and become its largest equity holder, breeding effectively its own horse into the high-stakes AI chipmaker race.
This will help the administration’s efforts and ambitions at creating new jobs in the US and revitalize its industry, but more importantly attempt to stay ahead of its main competitor, China, on the AI front.
Intel is expected to benefit substantially from this rumoured plan of the US government, which will be casting a lifeline to the chipmaker by supporting its cash burning foundry business and possibly set an end to its disappointing yearslong underperformance.
Additionally, Softbank, a prominent multinational investment holding company hailing from Japan, headed by its visionary CEO Masayoshi Son, announced earlier today that it would invest upwards of $2billion dollars in Intel, a move that could not only revitalize the juggernaut by also help materialize Softbank’s Stargate Project ambitions.
Large-scale initiative aimed at building advanced AI infrastructure in the United States, with a planned investment of up to $500 billion over four years. It is a joint venture involving SoftBank, OpenAI, Oracle and the addition of Intel into the mix is a clear sign of a vote of confidence by the investment bank, and/or a well-coordinated plan with the US administration since it will benefit tremendously as well from the initiative. Forecasts point to a creation of up to 100,000 jobs and boost U.S. AI leadership and reindustrialization
Technical Analysis
INTC Chart – Intel seeks to break its long-term consolidation spell and rally higher after catalytic news
Resistance: 26.40 (R1), 29.00 (R2), 31.80 (R3)
Support: 23.50 (S1), 21.00 (S2), 19.00 (S3)
