A slew of positive news came in this weekend for Intel. That, combined with potential rate cuts, can only mean one direction for the stock.
Intel news – Search
- $2B aid money for a new chip plant in Poland
- $3.5B military contract
- NVDA and Apple kindly 'nudged' to use Intel foundaries (instead of TSMC). This will be fun!
A lot of it seems like a government bailout, because chips are soooo strategic, critical, etc. That's what you get when people who think “files are in the cloud, up above” in literal sense, have too much legislative powers. But that's good news for a dinosaur company at least in the short term.
Besides, the company is exploring strategic options like selling parts of its business and scrapping some projects. The stock's price has already declined significantly since Intel reported its latest earnings in August, and it's one of the worst-performing S&P 500 stocks of the year. Yet, it's holding onto its place in the blue-chip Dow Jones index. The company is also exploring potential partnerships and acquisitions to strengthen its business.
PS – Why is GFS Globalfoundries tanking too?
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