Wall Street Reacts as Trump Eyes Government Stake in Intel (INTC)

Intel Corporation (NASDAQ:INTC) is one of the AI Stocks Making Headlines This Week. On August 15, Bloomberg reported that the Trump administration is engaged in talks with Intel Corp. to have the US government take a stake in the company. The news marks the latest move from the US government to blur the lines between state and industry.

Not only will the agreement boost Intel, but it will also help the chipmaker follow through on its plans to open a new US manufacturing facility in Ohio. These plans have been repeatedly delayed.

Pixabay/Public Domain

Several Wall Street analysts such as DA Davidson and Bernstein weighed in following the news. According to analyst Gil Luria, a government intervention in a struggling Intel is “essential” for the sake of national security.

“We’re all capitalists. We don’t want government to intervene and own private enterprise, but this is national security.”

-Luria, Head of technology research at D.A. Davidson, speaking at CNBC’s Squawk Box.

Luria further noted that such a deal is essential to revive Intel and reduce the country’s dependence on companies like Samsung and Taiwan Semiconductor Manufacturing Co. to manufacture chips.

On the other hand, Bernstein isn’t “hugely tempted to get involved” right now, and believes that investors would have to wait around and see if “Trump can Make Intel Great Again.”

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

While we acknowledge the risk and potential of INTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Buzzing AI Stocks on Wall Street and 10 AI Stocks Making Headlines This Week

Disclosure: None.