Intel Corp (NASDAQ:INTC) stock was last seen up 3.8% at $20.40, after Bloomberg reported the chip name qualified for $3.5 billion in federal grants to produce chips for the Pentagon.
Intel's reported grant to make chips for the Pentagon could be a vote of confidence in the chip maker from the U.S. government.
Intel stock is down 60% this year.
Intel lost out on a contract to design and fabricate Sony's PlayStation 6 chip in 2022, which dealt a significant blow to its effort to build its fledgling contract manufacturing business, according to three sources with knowledge of the events.
Intel Corp has officially qualified for as much as $3.5 billion in federal grants to make semiconductors for the U.S Department of Defense, Bloomberg News reported on Friday, citing people familiar with the matter, after the chipmaker reached a binding agreement with U.S officials.
Intel's (INTC) stock, once a tech darling, has fallen on hard times.
The European Commission has given Poland a green light to support an Intel chip plant with more than 7.4 billion zlotys ($1.91 billion) in state aid, deputy prime minister and digital affairs minister said on Friday.
In the latest trading session, Intel (INTC) closed at $19.36, marking a -1.43% move from the previous day.
Commerce Secretary Gina Raimondo has met with investors recently to tout the benefits of Intel and U.S. chip production. She also recently met with Intel CEO Pat Gelsinger, who is trying to get the chipmaker back on track.
Intel is undergoing significant restructuring under CEO Pat Gelsinger, including cost-cutting, asset divestitures, and focusing on the core semiconductor business amid intense competition. When the new CEO was appointed in 2021, I thought it was the right move but decided to stay on the sidelines until the company delivers tangible results. Intel is expected to present a new reorganization plan to the board later this month, but this is not the main reason why I am changing my stance for Intel.
Intel's decline from its once-dominant position in the chip industry, highlighting its current struggles as competitors like NVIDIA and AMD have surged ahead.
Intel stock (NASDAQ: INTC) is trading at about $19 per share, its lowest point in over a decade. Could the stock rise by over 3x per share in the next few years?