Shares of Intel (INTC 3.19%) are hovering this week, up 24.1% as of three:13 p.m. ET. The spike comes because the S&P 500 (^GSPC -0.27%) was up 1%, and the Nasdaq-100 was up 0.5%.
The struggling chipmaker’s inventory is leaping after its CEO met with Trump on the White Home; rumors are spreading that the administration could take a stake within the firm.
A high-stakes assembly goes properly
After Trump referred to as on CEO Lip-Bu Tan final week to resign due to his alleged ties to the Chinese language authorities, a gathering was organized. The White Home go to seems to have gone fairly properly, with Trump saying Tan has an “superb story.”
Now it is being reported that the Trump administration is contemplating taking a stake within the troubled however strategically necessary chipmaker. The deal would partially hinge on Intel persevering with with its just lately deserted plans to open a producing hub in Ohio.
Picture supply: Getty Photographs.
Intel has actual strategic significance
Regardless of its struggles in synthetic intelligence (AI), having misplaced important floor to Nvidia and Superior Micro Units, Intel stays strategically necessary attributable to its important home manufacturing capabilities, one thing its rivals lack. Semiconductor fabrication capability throughout the U.S. just isn’t one thing that Trump needs to cut back, one of many few areas by which this administration and its predecessor are in alignment.
Intel’s path to relevance within the uber-crucial AI market is unclear. Nevertheless, given the corporate’s strategic significance, I nonetheless suppose Intel is an effective decide for traders with an urge for food for threat.
Johnny Rice has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Superior Micro Units, Intel, and Nvidia. The Motley Idiot recommends the next choices: brief August 2025 $24 calls on Intel. The Motley Idiot has a disclosure coverage.
