Trump Regrets Not Asking for Larger Stake in Intel
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 35 minutes ago
0mins
Should l Buy INTC?
Source: CNBC
- Government Stake Impact: The U.S. government's 9.9% stake in Intel was achieved by converting $5.7 billion in CHIPS Act grants into equity, which not only stabilized Intel's stock price but also laid the groundwork for future growth.
- Stock Price Recovery: Intel's stock has surged over 300% in the past year, closely tied to a resurgence in demand for its central processing units (CPUs), indicating a renewed recognition of the company's importance in the AI era.
- Market Competition Dynamics: Trump noted that had he implemented tariffs during his presidency, Intel would be the largest company globally, reflecting his concern for U.S. semiconductor competitiveness and implicitly challenging TSMC's market position.
- Future Outlook: Bank of America predicts the CPU market could double by 2030, with Intel's CEO stating that demand for data center CPUs exceeds supply, suggesting the company's strategic position in the AI sector will further strengthen.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 115.930
Low
20.00
Averages
39.30
High
52.00
Current: 115.930
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company's segments include Intel Products, Intel Foundry, and All Other. Its Intel Products comprise Client Computing Group (CCG) and Data Center and AI (DCAI). CCG delivers platforms and processors that power PCs and edge devices, enabling enhanced performance, connectivity and user experience for consumer and commercial markets with capabilities that also support retail, industrial robotics and AI ecosystems at the edge. DCAI delivers workload-optimized solutions based upon its x86 architecture for data centers, including CPUs, AI accelerators, NICs, IPUs and custom ASICs, enabling performance and scalability for cloud, enterprise, telecommunication and HPC environments. The Intel Foundry segment comprises technology development, manufacturing and foundry services, developing new semiconductor process technologies and advanced packaging technologies. All Other segments include Mobileye and Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trump Regrets Not Asking for Larger Stake in Intel
- Government Stake Impact: The U.S. government's 9.9% stake in Intel was achieved by converting $5.7 billion in CHIPS Act grants into equity, which not only stabilized Intel's stock price but also laid the groundwork for future growth.
- Stock Price Recovery: Intel's stock has surged over 300% in the past year, closely tied to a resurgence in demand for its central processing units (CPUs), indicating a renewed recognition of the company's importance in the AI era.
- Market Competition Dynamics: Trump noted that had he implemented tariffs during his presidency, Intel would be the largest company globally, reflecting his concern for U.S. semiconductor competitiveness and implicitly challenging TSMC's market position.
- Future Outlook: Bank of America predicts the CPU market could double by 2030, with Intel's CEO stating that demand for data center CPUs exceeds supply, suggesting the company's strategic position in the AI sector will further strengthen.
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Jefferies Downgrades Mobileye Amid Valuation Concerns
- Performance Growth vs. Valuation Risks: Mobileye's stock has surged over 15% since April 23, driven by a 27% revenue growth in Q1 to $558 million; however, analysts express concerns that the current valuation appears stretched relative to execution risks, potentially impacting future performance.
- Future Revenue Expectations: The company anticipates revenue between $1.94 billion and $2.02 billion for 2026, slightly above analysts' estimate of $1.97 billion, yet it projects an operating loss of approximately $4.28 billion to $4.33 billion, indicating pressure on profitability.
- Intensifying Market Competition: Jefferies' “Underperform” rating and $8 price target suggest a potential 20% downside for the stock, reflecting challenges to Mobileye's market position amid increasing competition from major tech and automotive players.
- Retail Investor Sentiment: Despite a 4% decline in Mobileye's stock year-to-date, retail sentiment on Stocktwits remains bullish, with a 100% increase in message volume over 24 hours, indicating market optimism regarding future technological advancements.
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Nvidia's Strategic Software Moat and Competitive Landscape
- Software Moat Construction: Nvidia has established a formidable software moat through its CUDA platform, locking developers into its GPUs even when competitors offer hardware alternatives, thereby enhancing its competitive edge in the market.
- Investment Strategy Analysis: Nvidia is leveraging its cash reserves for strategic acquisitions, having acquired chip startup Groq last year and invested in several emerging cloud companies and AI startups in recent months, indicating a well-planned approach across its technology stack.
- Market Competition Landscape: Despite Nvidia's dominance in AI infrastructure, it faces competition from AMD and hyperscalers, who are actively developing their own data center chips, posing potential threats to Nvidia's market share.
- Financial Performance Expectations: Nvidia is expected to report an 80% revenue increase to $79.23 billion for the first quarter, with adjusted earnings per share rising 120% to $1.78, reflecting extremely bullish market sentiment regarding its future performance.
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- Growth in Tokenization: As of May 12, the total value of tradeable tokenized assets on the XRP Ledger reached $428 million, a 267% increase from last year, yet this growth has not significantly boosted demand for XRP, revealing a structural flaw in its investment thesis.
- Transaction Fee Concerns: The XRP network charges approximately 0.00001 XRP per transaction, with fees burned post-payment, resulting in only 0.014% of total supply being destroyed since inception, indicating that an enormous volume of transactions would be required to create any noticeable upward price pressure.
- Ripple's Investment Strategy: Despite XRP's poor performance, Ripple continues to invest in upgrades to the XRPL and in acquiring new customers, demonstrating a long-term commitment to increasing XRP's price; however, the current business model fails to generate organic buy demand for XRP, leading to cautious investor sentiment regarding its future.
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- Bloom Energy Breakthrough: Bloom Energy reported a 130% year-over-year revenue increase in Q1, prompting management to raise full-year guidance from 60% to 80%, indicating strong performance in the AI era and expected sustained profitability.
- Sandisk Demand Surge: Sandisk's revenue soared 251% year-over-year in Q3 of fiscal 2026, driven by a 233% increase in data center revenue, with management forecasting a sevenfold revenue growth in Q4, highlighting its strong demand and profit potential in the AI storage market.
- Lumentum Revenue Doubling: Lumentum achieved a 90% year-over-year revenue increase in Q3 of fiscal 2026 and reported GAAP operating profit, with the CEO stating that growth in optical products is expected to enhance earnings power, reflecting strong demand from data centers.
- Micron's Technological Edge: Micron experienced a 70% year-over-year revenue increase in Q2 of fiscal 2026, with earnings per share rising from $4.60 to $12.07, benefiting from high demand and low supply for AI chips, and is expected to maintain growth momentum in the short term.
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Trump Regrets Not Asking for Larger Stake in Intel
- Government Stake Impact: The U.S. government's 9.9% stake in Intel was achieved by converting $5.7 billion in CHIPS Act grants into equity, which not only stabilized Intel's stock price but also laid the groundwork for future growth.
- Stock Price Recovery: Intel's stock has surged over 300% in the past year, closely tied to a resurgence in demand for its central processing units (CPUs), indicating a renewed recognition of the company's importance in the AI era.
- Market Competition Dynamics: Trump noted that had he implemented tariffs during his presidency, Intel would be the largest company globally, reflecting his concern for U.S. semiconductor competitiveness and implicitly challenging TSMC's market position.
- Future Outlook: Bank of America predicts the CPU market could double by 2030, with Intel's CEO stating that demand for data center CPUs exceeds supply, suggesting the company's strategic position in the AI sector will further strengthen.
See More
Jefferies Downgrades Mobileye Amid Valuation Concerns
- Performance Growth vs. Valuation Risks: Mobileye's stock has surged over 15% since April 23, driven by a 27% revenue growth in Q1 to $558 million; however, analysts express concerns that the current valuation appears stretched relative to execution risks, potentially impacting future performance.
- Future Revenue Expectations: The company anticipates revenue between $1.94 billion and $2.02 billion for 2026, slightly above analysts' estimate of $1.97 billion, yet it projects an operating loss of approximately $4.28 billion to $4.33 billion, indicating pressure on profitability.
- Intensifying Market Competition: Jefferies' “Underperform” rating and $8 price target suggest a potential 20% downside for the stock, reflecting challenges to Mobileye's market position amid increasing competition from major tech and automotive players.
- Retail Investor Sentiment: Despite a 4% decline in Mobileye's stock year-to-date, retail sentiment on Stocktwits remains bullish, with a 100% increase in message volume over 24 hours, indicating market optimism regarding future technological advancements.
See More
Nvidia's Strategic Software Moat and Competitive Landscape
- Software Moat Construction: Nvidia has established a formidable software moat through its CUDA platform, locking developers into its GPUs even when competitors offer hardware alternatives, thereby enhancing its competitive edge in the market.
- Investment Strategy Analysis: Nvidia is leveraging its cash reserves for strategic acquisitions, having acquired chip startup Groq last year and invested in several emerging cloud companies and AI startups in recent months, indicating a well-planned approach across its technology stack.
- Market Competition Landscape: Despite Nvidia's dominance in AI infrastructure, it faces competition from AMD and hyperscalers, who are actively developing their own data center chips, posing potential threats to Nvidia's market share.
- Financial Performance Expectations: Nvidia is expected to report an 80% revenue increase to $79.23 billion for the first quarter, with adjusted earnings per share rising 120% to $1.78, reflecting extremely bullish market sentiment regarding its future performance.
See More
Shifting Investment Thesis on XRP
- Declining Market Appeal: XRP has seen a 37% decline over the past year, raising doubts about its attractiveness as a bridge currency for cross-border payments, especially with the rise of stablecoins, including Ripple's own RLUSD, which now boasts a market cap exceeding $1.5 billion, making it a more appealing option.
- Growth in Tokenization: As of May 12, the total value of tradeable tokenized assets on the XRP Ledger reached $428 million, a 267% increase from last year, yet this growth has not significantly boosted demand for XRP, revealing a structural flaw in its investment thesis.
- Transaction Fee Concerns: The XRP network charges approximately 0.00001 XRP per transaction, with fees burned post-payment, resulting in only 0.014% of total supply being destroyed since inception, indicating that an enormous volume of transactions would be required to create any noticeable upward price pressure.
- Ripple's Investment Strategy: Despite XRP's poor performance, Ripple continues to invest in upgrades to the XRPL and in acquiring new customers, demonstrating a long-term commitment to increasing XRP's price; however, the current business model fails to generate organic buy demand for XRP, leading to cautious investor sentiment regarding its future.
See More
AI Stocks Drive Market Gains Amidst Tech Boom
- Bloom Energy Breakthrough: Bloom Energy reported a 130% year-over-year revenue increase in Q1, prompting management to raise full-year guidance from 60% to 80%, indicating strong performance in the AI era and expected sustained profitability.
- Sandisk Demand Surge: Sandisk's revenue soared 251% year-over-year in Q3 of fiscal 2026, driven by a 233% increase in data center revenue, with management forecasting a sevenfold revenue growth in Q4, highlighting its strong demand and profit potential in the AI storage market.
- Lumentum Revenue Doubling: Lumentum achieved a 90% year-over-year revenue increase in Q3 of fiscal 2026 and reported GAAP operating profit, with the CEO stating that growth in optical products is expected to enhance earnings power, reflecting strong demand from data centers.
- Micron's Technological Edge: Micron experienced a 70% year-over-year revenue increase in Q2 of fiscal 2026, with earnings per share rising from $4.60 to $12.07, benefiting from high demand and low supply for AI chips, and is expected to maintain growth momentum in the short term.
See More
Asia-Pacific Markets Poised for Mixed Open Amid Geopolitical Tensions
- Geopolitical Tensions: President Trump warned Iran to
See More
