The Biden Administration is Bullish on Intel and Ready to Put Their Money on the Table​

By Chris Johnson, Quantitative Specialist, Money Morning • February 9, 2024

“The nine most terrifying words in the English language are: I’m from the Government, and I’m here to help.”
-Ronald Reagan

It was the first thing I thought of this morning when I was doing my morning reading. That’s because the White House announced that more than $5 billion dollars is getting ready to make its way to companies like Intel (INTC). But will it help, finally??

The money is part of the commitment that the Administration made two years ago when the CHIPS Act was passed into law.

Of course, Intel and others haven’t seen a dime yet. And that’s one of the reasons that Intel’s shares were hit after their last earnings call.

The company is literally sitting on land outside of Columbus, Ohio, waiting for funding to start flowing.

Once that happens, there will be no looking back, as Intel will become the first domestic semiconductor foundry giant. The move will garner business from everyone that needs to have their chips manufactured, including Nvidia (NVDA).

This is why Intel is one of my “sleeper stocks” in the AI sector. If you haven’t seen it, check out the video I recorded recently after the company’s earnings results and conference call.

The stock has been consolidating at $42.50 – just as I forecasted – after dropping 10% following their earnings call. The reason Intel lowered expectations for the current quarter is because they have been waiting for development just like we saw this morning.

Will today’s announcement propel the stock to $70? No, there’s more work to be done, but this is likely the beginning of the move that Wall Street is underestimating.

(Click to enlarge)

Bottom Line

Patience seems to be the word of the day. My long-term outlook for Intel remains bullish, and I continue to add to a long-term stock position in the company.

I’m also utilizing a special strategy to build a long-term leveraged portfolio with Intel, Amazon (AMZN), Microsoft (MSFT), IBM (IBM), and other AI stocks.

We’ll talk about this approach in the coming weeks… You’ll love it.

Enter your email for stocks to watch, market overviews, and more stories like this each morning.

By submitting your email address, you will receive a free subscription to Money Morning and occasional special offers from us and our affiliates. You can unsubscribe at any time and we encourage you to read more about our Privacy Policy.

About the AuthorChris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.
… Read full bio

Rate this post

Leave a Comment