According to Bloomberg News, the U.S. Government could invest around $3.5 billion in Intel (NASDAQ:INTC). The Government is considering this investment so that the chipmaker can produce advanced chips for military and intelligence programs.
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The funding was part of a bill the House passed on Wednesday. It would span three years and be allocated to the “secure enclave” program from the $39 billion grant pool under the Chips and Science Act, which aims to encourage domestic chip production. The Senate is expected to pass the bill by Saturday.
As part of the Chips Act, Intel stands to receive over $10 billion in grants and loans. However, last year, Senators expressed concerns about the decision to award grants to one company for the secure enclave initiative, as it could potentially come at a higher cost than required.
Is Intel a Buy, Hold, or Sell?
Analysts remain sidelined about INTC stock with a Hold consensus rating based on eight Buys, 24 Holds, and four Sells. Over the past year, INTC stock has surged by more than 70%, and the average INTC price target of $46.95 implies an upside potential of 5.5% at current levels.
