A microchip industry behemoth, Intel Corporation (NASDAQ: INTC), is the frontrunner to potentially receive billions of dollars in government investment for a high-security production line that will supply microchips for U.S. military and intelligence.
Funded under the President Biden administration’s $53 billion Chips Act passed last year, the facility could be located in Intel’s Arizona factory complex, according to the reports from the Wall Street Journal on November 6.
In addition to the top-security facilities, the company is in the pole position to receive billions of dollars in grants to fund new factories it is building in the U.S., including in Ohio and Arizona. Chief Executive Patrick Gelsinger has held several meetings with Gina Raimondo, United States Secretary of Commerce.
How is Intel stock faring currently?
Year-to-date, this stock gained roughly 37.75%, driving its market capitalization to $160 billion.
After overachieving their expected results for the third-quarter earnings of 2023 and recording a revenue of $14.2 billion, Intel still fell short by 8% from the same period in the previous year.
Strongly benefiting from the current AI-driven boom across the tech industry, combined with the news of a potential multi-billion investment by the U.S. government, this company forecasts a lucrative period.
However, it is essential to notice that news of Intel’s dwellings in the military industry hasn’t been received well by some political figures who claim that this investment will further monopolize the microchip market and drive smaller producers out of business.
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