What Happened?

Shares of computer processor maker Intel (NASDAQ:INTC) fell 5.2% in the afternoon session after amid growing worries that the Trump administration might repeal the CHIPS Act, which has been a big driver of government contracts. President Trump called the CHIPS Act "horrible, horrible thing" during a meeting with Congress. If repealed, Intel could take a serious hit, especially in its Foundry segment, which had been banking on government support to stay competitive.

The shares closed the day at $20.79, down 2.6% from previous close.

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What The Market Is Telling Us

Intel’s shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 6.6% after Reuters reported that Broadcom and Nvidia were running tests on Intel's 18A manufacturing process, highlighting the company's (INTC's) progress and the potential to attract high-caliber customers. With high expectations surrounding Intel's Foundry business, these updates lend credibility to the growing hype, and even the speculation about a potential acquisition of the unit, suggesting there may be real substance behind it.

Intel is up 2.4% since the beginning of the year, but at $20.71 per share, it is still trading 55.1% below its 52-week high of $46.15 from March 2024. Investors who bought $1,000 worth of Intel’s shares 5 years ago would now be looking at an investment worth $363.59.

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