Intel's investment case is increasingly driven by U.S. industrial policy, with government backing reframing timelines beyond near-term fundamentals. The U.S. government injected $5.7 billion in Q3 and previously invested $11.1 billion for a roughly 10% stake. Intel repaid $4.3 billion of debt in Q3, ending the quarter with $30.9 billion in cash.
Microsoft owns 27% of OpenAI, with massive Azure cloud contracts in the pipeline. Alphabet has come back to be a recognized leader in generative AI, with a big lead in autonomous vehicles.
US chip stocks are attempting to rebound, led by NVIDIA after major sovereign wealth fund investment. Despite holiday-thinned volume and volatility, the broader tone remains constructive, with pullbacks still viewed as buying opportunities across the sector.
Intel's advanced chip node, 18A, is now in high-volume production at its new Arizona fab, but no major outside customers have emerged The fab is meant to help Intel catch back up to TSMC after years of missteps, with executives saying it's "turned the corner."
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