Intel (NASDAQ: INTC) stock was gaining ground in Tuesday’s trading, bucking a trend that was impacting artificial intelligence (AI) stocks. The semiconductor company’s share price was up 2.1% as of 3:13 p.m. ET, according to data from S&P Global Market Intelligence. Meanwhile, Nvidia was down 4.4%, and AMD was down 4.9%.
After the market closed on Friday, Bloomberg reported that Intel could receive up to $10 billion in additional grants and loans to support its chip fabrication business — funding allocated to boost the American semiconductor industry as part of the CHIPS Act. Because the market was closed Monday for Presidents Day, investors’ positive reactions to the news had to wait until Tuesday.
Intel is gaining despite macroeconomic concerns
AI stocks with growth-dependent valuations are broadly losing ground Tuesday as investors weigh inflationary risks. Home Depot published its earnings results before the market opened, and management stated that the continued impacts of inflation were causing customers to be more cautious with their spending. Those comments have left investors more concerned that the Federal Reserve may opt to wait longer before cutting benchmark interest rates.
Despite the uptick in perceived macroeconomic risks, Intel stock gained significant ground. It had been up by as much as 3.8% earlier in the day’s trading, but lost some ground as inflation concerns started to play a bigger role in moving the broader market.
Intel could deliver big news this week
Intel is scheduled to host a conference Wednesday during which it will provide updates on its foundry business. As the leading U.S.-based manufacturer of semiconductors, the company’s economic and geopolitical importance is on the rise.
Right now, Taiwan Semiconductor Manufacturing is the world’s leading manufacturer of the high-performance semiconductors used for artificial intelligence and other accelerated computing applications. But China has indicated that it could move to exert greater influence over Taiwan in the near future, and that poses major economic and security risks to the…
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