Mobileye Global Inc (MBLY) stock experienced a significant jump on Thursday, driven by Intel’s reaffirmation of its majority stake in the company and the U.S. Federal Reserve’s interest rate cut. The news comes amidst Intel’s recent success in securing lucrative chipmaking deals, including a multi-billion-dollar contract with Amazon and funding from the CHIPS and Science Act.
Intel Corporation (INTC) stock is surging on Monday following reports that the company is in line to receive up to $3.5 billion in federal grants to manufacture semiconductors for the U.S. Department of Defense. The potential funding, part of the Chips and Science Act’s ‘Secret Enclave’ program, would bolster Intel’s existing efforts to secure the domestic chip supply chain and support its facilities in states like Arizona and Ohio.
Intel’s stock continues to struggle after Broadcom reportedly rejected its 18A manufacturing process due to failed tests. This news comes on the heels of a difficult quarter for Intel, with the stock already down over 60% year-to-date. While analyst forecasts suggest potential upside, the recent setbacks raise concerns about Intel’s future.
Intel is making strides in AI, partnering with IBM and introducing new AI-focused processors. However, its short-term margins are squeezed by production costs and competition. Geopolitical tensions with China are further impacting its revenue prospects, leading to a decline in earnings estimates and investor confidence.
Intel’s recent price decline has created a gap on the chart, and this could lead to a ‘gap refill’ scenario where the stock rapidly rises back to the previous level. This occurs due to the lack of sellers at those gapped-down prices, allowing buyers to push the price higher with minimal resistance.
