On Thursday, Intel Corporation (NASDAQ:INTC) experienced a notable increase in its stock value following the announcement of substantial financial support from the U.S. government. The Biden administration has agreed to provide Intel with $8.5 billion in grants and up to $11 billion in loans. This funding is aimed at enhancing the production of semiconductors within the United States.
The agreement, which was disclosed earlier this week, is set to benefit Intel's manufacturing facilities across several states, including Arizona, Ohio, Oregon, and New Mexico. The initiative is part of a broader effort to boost domestic chip manufacturing in response to recent global supply chain challenges.
At 10:55 ET on Thursday, Intel's shares had climbed by just over 2% to $43.12. This uptick comes after the stock had seen a decline of more than 14% since the beginning of the year.
In response to the news, Global Equities Research has revised its 12-month price target for Intel, raising it to $100 from the previous $65. The research firm believes that even this new target may be on the conservative side, given Intel's unique position in the industry.
Intel stands out as the sole manufacturer of the next generation of AI processors, according to Global Equities Research. The company's advancements in process technologies, which include 18A, 14A, and the forthcoming 10A, are considered critical for the AI industry.
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