Why Intel Is Gaining During a Bearish Day for Artificial Intelligence (AI) Stocks
(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.
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.
Source Fool.com
Intel Corp. Stock
Our community is currently high on Intel Corp. with 26 Buy predictions and 13 Sell predictions.
With a target price of 40 € there is a positive potential of 35.43% for Intel Corp. compared to the current price of 29.54 €.
