10 AI Stocks Analysts Say You Shouldn’t Ignore

7. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 82

Intel Corporation (NASDAQ:INTC) is one of the 10 AI Stocks Analysts Say You Shouldn’t Ignore. On August 25, KeyBanc analyst John Vinh reiterated a Sector Weight rating on the stock citing positive implications from the US and Softbank Equity Stake in Intel.

Intel is issuing 433M new shares of common stock to the US government for 10% equity stake. The firm discussed the funding breakdown, past support, and the “passive” role of the US government in Intel.

“On August 22, 2025, Intel announced that it will issue 433M new shares of common stock to the U.S. government, giving Washington a 10% equity stake in the Company. The $8.9B investment will be funded by $5.7B of CHIPS Act grants previously awarded but not yet disbursed and $3.2B from the Secure Enclave program, with Intel continuing to meet its defense-related obligations. Including the $2.2B in grants already received, the total government support rises to $11.1B. Additionally, the government’s investment in INTC will be a passive ownership, with no Board representation or other governance or information rights. The government also agrees to vote with the Company’s Board of Directors on matters requiring shareholder approval, with limited exceptions. Finally, the existing claw-back and profit-sharing provisions associated with the government’s previously dispersed $2.2 billion grant to Intel under the CHIPS Act will be eliminated to create permanency of capital as the Company advances its U.S. investment plans. We see positive implications associated with this transaction as we were previously concerned that the U.S. government’s equity stake would likely have other INTC obligations with a potentially activist ownership role. Additionally, with the removal of the clawback on the previous CHIPS Act grant and announced equity transaction, uncertainty associated with whether INTC’s Chips Act funding would be reneged is off the table.”

KeyBanc also highlighted Intel’s investment from SoftBank, stating that the combined transactions of US government and SoftBank will have a modest dilutive impact of $0.07 on their FY26 EPS estimate of $0.67. Despite the positive developments, the firm maintains a Sector Weight rating on the stock.

Intel Corporation (NASDAQ:INTC) designs and sells computing hardware, semiconductor products, and AI-driven solutions for various industries.