Companies

Intel Corporation (INTC) Sees Uptick as Chip Act Conversations Intensify

Published February 21, 2024

On Tuesday, shares of Intel Corporation INTC experienced a noticeable increase amidst emerging reports that the semiconductor giant is actively engaging in talks with U.S. Government officials. The discussions center on the potential for INTC to obtain a historic level of funding courtesy of the U.S. Chips Act. The company endeavors to stake a claim in the burgeoning artificial intelligence boom, with aspirations of securing financial support that could surpass the $10 billion mark, combining both loans and direct grants.

The Impact on INTC

This development signifies a pivotal move for INTC, which continues to solidify its position as a leader in the highly competitive tech industry. INTC is renowned as a leading semiconductor chip producer and is recognized for its influential role in pioneering the x86 series of microprocessors, the ubiquitous component within a majority of personal computers. The possible infusion of governmental assistance is poised to further enhance INTC's capabilities in AI-related advancements and maintain its competitive edge.

Broad Industry Implications

While INTC is seeing this potential investment as a major win, it's worth noting the broader spectrum of the industry. For instance, Brookfield Infrastructure Corporation BIPC, with its stronghold in natural gas transmission systems in Brazil, represents another facet of the infrastructure realm that could experience indirect benefits from such tech-focused policy incentives. On the flipside, GLOBALFOUNDRIES Inc. GFS, as a direct contender in the semiconductor foundry space, might find itself even more in competition for similar governmental endorsements, evidencing the depth of the impact that the U.S. Chips Act is poised to have across the industry.

Intel, chip, investment