Why Intel (INTC) Stock Is Trading Up Today
What Happened?
Shares of computer processor maker Intel (NASDAQ:INTC) jumped 8.7% in the morning session after Vice President JD Vance announced at the AI Action Summit in Paris that the US will provide regulatory measures to protect the country's artificial intelligence technologies from "theft and misuse."
The global AI race is intensifying across industries, but few are as critical as semiconductors, where AI-powered chips run smart data centers, large language models like ChatGPT, and self-driving cars. Intel has recently won government grants to build facilities to manufacture cutting-edge semiconductor chips on US soil in the coming years, a move that could help improve the company's competitiveness.
The Vice President's comments suggest Intel and other US innovators could benefit from measures that help protect valuable intellectual property, especially in artificial intelligence, ensuring their innovations drive sales and expand market share both domestically and internationally.
Is now the time to buy Intel? Access our full analysis report here, it's free.
What The Market Is Telling Us
Intel's shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 25 days ago when the stock gained 8% on the news that Bloomberg reported the company could be a potential acquisition target. Bloomberg cited SemiAccurate, a tech site founded by Charlie Demerjian. SemiAccurate claimed it had "read an email about a company attempting to buy all of Intel."
Intel is up 4.4% since the beginning of the year, but at $21.12 per share, it is still trading 54.2% below its 52-week high of $46.15 from March 2024. Investors who bought $1,000 worth of Intel's shares 5 years ago would now be looking at an investment worth $313.24.
Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
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