Intel In Line To Receive Defense-Chip Facilities Backing
Comment
The Wall Street Journal, citing insider sources, reports that Intel stands as the prime contender to secure financial backing for the establishment of chip-manufacturing facilities aimed at diminishing the U.S. military's reliance on imports from Asia, most notably Taiwan.
Funding from the U.S. government would serve as a vote of confidence in CEO Pat Gelsinger's vision to position the company as a domestic substitute to Taiwan Semiconductor Manufacturing, the world's largest contract chip manufacturer.
While the precise funding amount remains undetermined, it is worth noting that the establishment of secure chip-manufacturing facilities may require a total investment of approximately $3 billion to $4 billion. The Chips Act, authorized by the Biden administration, encompasses a total of $39 billion in manufacturing grants.
Technical Analysis
Source: www.tradingview.com
Intel has generally been trending up for 2023 (green arrow). It green 5-week EMA is above its orange 10-week EMA. This puts the EMAs into a bullish formation. Moreover, the RSI has been positioned over 50 for most of the year (green rectangle). This connotes an underlying bullish momentum which has been driving INTC.us higher. The longer the RSI maintains above 50, the great the momentum support for the stock.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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