Talk of a US government taking an equity stake in Intel sounds dramatic, no doubt. But for investors, it doesn't solve the company's core issue, which is catching up in advanced chip manufacturing. In July, Lip Bhutan told employees Intel's advanced manufacturing would only move forward with quote confirmed customer commitments and quote no more blank checks.It was a direct signal to Washington. Without outside orders, Intel wouldn't build. That message landed after 10 also met with President Trump just thi ...

Questioning it, asking How does the US government help Intel fix its leading edge node when it's not a money issue. They have no customers and there is a good reason for that. Jordan Extrapolate on that.Yeah. I mean, Intel, in my opinion, has two main issues. One is on the technology side where their leading edge foundry business has struggled to execute at these more advanced nodes and they've lost a lot of potential business and share to TSM, who's executed flawlessly.And the second big issues, you know, ...

Government Funding & National Security - The White House is considering using Chips Act money for a potential equity stake in Intel [1][2] - This initiative aligns with national security efforts, particularly in competition with China, similar to the $400 million preferred equity stake investment in NTP materials, a rare earth company, by the Defense Department [4][5] - The administration aims to achieve onshoring of chip manufacturing in the US [6] Intel's Position & Potential Deal - Intel may receive almost $8 billion, potentially up to $11 billion, in loans pre-agreed [2] - Intel has not directly commented on the reporting but issued a statement generally supporting onshoring manufacturing [6] - The idea of government equity stake in Intel reportedly arose during a meeting between Intel's CEO and the President [6][7][8] Revenue Sharing & Restrictions - Nvidia and AMD would be giving 15% of their revenues generated out of China to the federal government [5]

even talking about it for Intel and maybe some other struggling American companies. Joining us now is Patrick Moorhead. He is CEO and chief analyst of Moor Insights and Strategy.Again, I want to be clear. We don't know anything. We don't know any potential terms. We don't even know if it's going to happen.Patrick. But what was sort of your initial reaction, your hot take to the Intel news yesterday. >> Well, I.>> Called this a week before, and I do believe that that the US government will put an investment ...

Market Overview - Major tech-heavy indices experienced declines, with the S&P 500 and Nasdaq 100 down 0.3% and 0.6% respectively, influenced by cautious investor sentiment ahead of the Trump-Putin meeting and a dip in consumer confidence [1] - The Dow Jones outperformed, rising 0.2% to surpass the 45,000-point mark, driven by a rally in pharmaceutical stocks [2] Company Performance - Intel Corp. (INTC) saw a significant increase of 7% as reports emerged that the U.S. administration is considering taking a stake in the company to enhance domestic chip manufacturing, marking a 26% rise for the week, the largest weekly gain since January 1975 [2] - UnitedHealth Group Inc. (UNH) was the standout performer, surging 14% after Berkshire Hathaway disclosed its purchase of shares, recovering from a previous decline of over 40% year-to-date [3][10] - The Health Care Select Sector SPDR Fund (XLV) outperformed the market, increasing by 1.88%, with notable gains in pharmaceutical stocks such as Centene Corp. (CNC) up 6.2%, Moderna Inc. (MRNA) up 6.63%, and Molina Healthcare Inc. (MOH) up 4.88% [10] Economic Indicators - Retail sales for July increased by 0.5% month-over-month, aligning with forecasts, but consumer sentiment dropped to 58.6 in August from 61.7 in July, missing expectations [4] - Inflation expectations rose, with the one-year outlook increasing to 4.9% from 4.5% and the five-year measure rising to 3.9% from 3.4% [4]

Group 1 - The U.S. government is considering using funds from the Chips Act to acquire shares in Intel, with discussions still in early stages regarding funding sources and structure [1][4] - Intel has already benefited significantly from the Chips Act, receiving $7.9 billion in commercial semiconductor manufacturing subsidies and up to $3 billion from the Department of Defense [4] - The Chips Act, signed into law in August 2022, provides $39 billion in subsidies and authorizes $75 billion in loans for the semiconductor industry [4] Group 2 - Direct government intervention in Intel is seen as crucial for national security, reflecting a trend of increased government involvement in key industries [3][6] - Analysts have mixed opinions on the potential government stake in Intel, with some viewing it as necessary for national security, while others express concerns about governance risks [6][7] - Previous government investments in key industries have had mixed results, with some leading to taxpayer losses [6][8]

Intel would not be the only name to strike a deal with the White House. Earlier this week, Nvidia and AMD agreed to pay the government 15% of their AI chip sales to China, while Apple has upped its investment in US manufacturing to $600 billion with CEO Tim Cook notably spending more time at the White House. The big question for investors, how do you trade these companies that are getting in business or being close to the administration.Is there more risk here or is there potentially more reward. Let's ask ...

Intel's Challenges in Advanced Chip Manufacturing - Intel's core issue is catching up in advanced chip manufacturing [2] - Intel's advanced manufacturing requires confirmed customer commitments, signaling a need for external orders to build [2] - Intel lags behind TSMC and Samsung in producing cutting-edge chips for AI [4] - Federal investment may not improve Intel's fab capabilities in the near term [4] - Intel needs both technology and customers to fill fabs profitably [5] Potential Government Support and Implications - The US government is reportedly considering taking an equity stake in Intel [1] - The government might fund the equity stake through existing CHIPS Act money [4] - Federal cash may provide short-term support on political headlines [5] - Potential shareholder dilution is a concern with federal investment [4] Strategic Options and Rumors - Closing down the foundry or working with other foundries was considered as a solution [6][7] - Rumors suggested TSMC taking a 51% stake in Intel's foundry business, but TSMC denied it [8] Market Reaction - Intel's stock was up over 65% following news of potential government support [5]

Intel Corp. INTC stock has been heading for its best week since January 2000, largely driven by vocal support from President Donald Trump. INTC stock is climbing again on Friday. Watch the price action here. A Revival For Intel — and the American Chip Industry?Intel's rally followed a meeting between Trump and Intel CEO Lip-Bu Tan and a flurry of reports that the Trump administration was actively exploring taking a direct government stake in the struggling semiconductor giant. Read Next: Michael Burry Joins ...

so much for being here. We'll look forward to that. >> Thanks for having me.Appreciate it. >> Coming up this morning, the Trump administration reportedly looking to use the Chips act funding for its potential stake in Intel. Our Kristina Partsinevelos is watching that in today's tech check.Morning again KP. >> Good morning Carl. Well, talk of the U.S. Government taking an equity stake in Intel.Sounds dramatic, but for investors, it doesn't really solve the company's core issue. Catching up in advanced chip ...