Peter Smith
Intel just delivered one of the most dramatic comebacks Wall Street has seen this year. The struggling chipmaker's stock exploded 25.5% on September 18th, jumping from $24.90 to over $31 after Nvidia dropped a bombshell - a $5 billion investment that nobody saw coming. But this isn't just about money. There's serious political drama brewing behind the scenes that could reshape the entire semiconductor landscape.
Nvidia Throws Intel a $5B Lifeline
Market watcher Ray Myers caught the surge in real-time, noting how Intel's shares went parabolic the moment news broke. We're talking about adding more than $6 per share in just hours - that's massive even by today's volatile standards. Investors are betting this cash injection will breathe life into Intel's flailing foundry business and maybe, just maybe, make them relevant again in America's chip strategy.
The Trump Factor Changes Everything
Here's where things get interesting. Word is that former President Trump has been working the phones, essentially arm-twisting Silicon Valley giants to prop up Intel. Nvidia's investment might just be the opening act. Apple, Microsoft, Amazon, Google, and even rival AMD could all find themselves "encouraged" to cut deals with Intel. If that's true, we're looking at political influence in corporate America like we haven't seen before.
Reality Check: Intel's Problems Run Deep
Don't get carried away by today's fireworks. Intel has spent years fumbling execution while competitors like TSMC and AMD ate their lunch. Manufacturing delays, missed deadlines, and a steady loss of market share have left the company in a tough spot. Political backing and splashy partnerships might generate headlines and new contracts, but they won't magically fix Intel's core problems with actually making chips people want.
Peter Smith
