New Tax Bill Boosts Intel's Expansion Plans

President Trump signed a new tax bill increasing tax credits for semiconductor firms like Intel to 35%, offering a lifeline for expansion. Intel received $7.86 billion in funding to advance manufacturing projects. The company aims to simplify its portfolio and focus on the 14A production process for competitive advantages.

NVIDIA and AMD are expected to benefit from federal funding for AI infrastructure expansion. NVIDIA’s H100, GH200, and Blackwell chips may see increased demand. AMD’s AI and CPU portfolio aligns with the push for AI data center expansion. Both companies are likely to receive funding for manufacturing operations and R&D.

Intel’s stock performance has declined 36.5% in the past year, with a Zacks Rank of #4 (Sell). The company’s forward sales ratio is 1.85, lower than the industry average. Earnings estimates for 2025 and 2026 have decreased. Intel faces challenges in its stock valuation and performance outlook.

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Read more at Nasdaq: Can Intel Benefit From Higher Tax Credits in the New Tax Bill?