Once mighty Intel fights to find a floor
The shares are up more than 10% over the last three days.
Shares of Intel, once the champion of American chip-making, have perked up in an interesting way this week.
Over the last three days, the stock is up more than 10% — its best three-day run since November — and has leap-frogged its 50-day moving average, a trend line that suggests a modicum of stability. The surge in the stock comes amid comments from Vice President JD Vance on Tuesday in which he vowed that AI chips would be made in the US. (Most of such chips are currently made in Taiwan.)
Whether Intel can hold these levels is an open question. Since the end of 2023, it has repeatedly broken through support on its way to losing roughly 60% of its market value. That equates to a paper loss for shareholders of almost $120 billion. But given how important the market seems to view political linkages to the current administration, if Intel becomes associated with the Trump-related push for domestic chip-making, the stock might finally find its footing.
