Despite what has been a horrid year for the technology stock, Intel (INTC) is likely to get a $20 billion boost, according to some experts. Indeed, there has been ongoing concern regarding the company’s CHIPS Act status. However, analysts have shown optimism that they could be set to receive the benefits of the legislation.
The United States CHIPS and Science Act is a federal statute that sought to boost the domestic production of semiconductors. Moreover, Intel was poised to be the beneficiary, leading it to invest $30 billion. However, lack of progress on the bill has hindered the stock, with many expecting that to change at the turn of the year.
Source: CNN
Also Read: Nvidia (NVDA) Officially Joins Dow Jones, Dethroning Intel
Intel May Get CHIPS Boost as Stock Looks to Recover From 2024 Tumble
Throughout 2024, Intel (INTC) has certainly struggled. The company was left unprepared by the incoming AI boom and has lost considerable ground to surging Nvidia (NVDA). Not only has the stock fallen more than 60% this year, but it has officially been booted from the Dow Jones Index after 25 years.
Yet, there are some reasons for investors to be optimistic. According to Needham analysts, Intel is expected to get a $20 billion boost from the CHIPS Act under the Trump administration’s second term. Although hey project the bill will likely undergo a rebranding, this functionality sshoudl remain the same.
Source: Business Insider
Also Read: Intel (INTC) Stock Jumps Following Bullish Revenue Projections
That would be a positive change for the stock. Earlier this year, Intel CEO Pat Gelsinger vocalized his frustration over the bill’s progress. The company invested $30 billion, honoring their part of the legislation. However, he noted that, to this point, they have received nothing from the government.
“We see the CHIPS Act as a critical thing that we have invested a lot of energy to,” Gelsinger said. “As we said on our [earnings call], we are disappointed by the time it is taking to get it done: it is well over two years since the CHIPS Act passed, and over that period I have invested $30 billion in US manufacturing, and we have seen $0 from the CHIPS Grant. This is taking too long; we need to get it finished.”
Although things look dire for INTC, the grant would provide some reprieve. Moreover, it would allow a sense of comfort for investors who have seen the company struggle amid increased spending. There is hope that the grant could allow it to begin a notable turnaround in 2025.
