Intel (NASDAQ: INTC) received a significant boost this week, as the Biden administration awarded the semiconductor giant billions of dollars in grants and loans.
The U.S. government has signed a preliminary agreement with Intel for $8.5 billion in grants and up to $11 billion in loans for plant expansions and upgrades in Arizona, Ohio, Oregon, and New Mexico.
This initiative is part of the administration's broader effort to enhance domestic chip output.
In response to this news, Intel's stock rose slightly by just over 2% to $43.12 at 10:55 ET (14:55 GMT), rebounding from a year-to-date decline of just over 14%. Global Equities Research reacted by revising its 12-month price target on Intel to $100 from $65, indicating that even this new target could be conservative.
Global Equities Research highlighted that Intel is the sole company capable of manufacturing the next generation of AI processors using its 18A, 14A, and then 10A process technologies.
The research firm emphasized the critical role of these technologies in the AI industry, suggesting significant potential upside for Intel.