This Trump stock pick hit with major downgrade

Core Viewpoint - HSBC has downgraded Intel from 'Hold' to 'Reduce', raising the price target to $24 from $21.25, amid concerns over the sustainability of its recent stock surge driven by significant investments [1][3] Group 1: Stock Performance - Intel's stock has increased by 55% since August and is up nearly 85% year-to-date, trading at $37.05 at the time of reporting [1][3] - The recent stock appreciation may be considered overdone, prompting caution among investors regarding Intel's growth sustainability without operational improvements [4] Group 2: Investment Inflows - The U.S. government converted $11.1 billion in CHIPS Act grants into a 9.9% equity stake in Intel, purchasing 433.3 million shares at $20.47 each [5] - Nvidia announced a $5 billion investment in Intel, acquiring approximately 4% of the company by purchasing shares at $23.28 each [6] Group 3: Strategic Partnerships - The partnership between Nvidia and Intel aims to develop custom data center and personal computing products, integrating Nvidia's GPUs with Intel's CPUs to enhance AI and computing capabilities [7]