Intel Stock Rises After a Report of a $3.5B Pentagon Chip Deal

Core Insights - Intel has secured $3.5 billion in grants from the Pentagon for chip manufacturing aimed at the U.S. military [1] - The funding is part of the Secure Enclave program, which focuses on producing advanced chips for military and intelligence applications [1] - This new contract adds to the previously awarded potential $8.5 billion in grants and $11 billion in loans from the CHIPS and Science Act of 2022 [2] Financial Performance - Intel's stock has seen a recent increase of over 2% following the announcement of the Pentagon grant, although it remains down more than 50% year-to-date [2] - The company has faced challenges, including wider-than-expected losses, job cuts, and increased competition from rivals in the AI chip market [2]