Intel Stock Is Moving Higher Wednesday: What's Going On?

Intel Corp INTC shares are trading higher Wednesday after the company signed a non-binding preliminary memorandum of terms (PMT) for direct funding under the CHIPS and Science Act.

What Happened: Intel and the U.S. Department of Commerce have signed a PMT for up to $8.5 billion in direct funding for commercial semiconductor projects under the CHIPS and Science Act.

“Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor innovation,” said Pat Gelsinger, CEO of Intel.

“AI is supercharging the digital revolution and everything digital needs semiconductors. CHIPS Act support will help to ensure that Intel and the U.S. stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.”

Intel has the option to draw federal loans of up to $11 billion under the PMT. Intel said it also plans to claim the U.S. Treasury Department’s Investment Tax Credit, which is expected to be up to 25% of qualified investments of more than $100 billion over five years. 

Intel’s investments in the U.S. are expected to create more than 10,000 company jobs and nearly 20,000 construction jobs. The proposed government funding will support multiple projects in Arizona, New Mexico, Ohio and Oregon.

Gelsinger is set to lead an event celebrating Intel’s direct funding announcement under the CHIPS and Science Act at 1:15 p.m. ET on Wednesday.

See Also: Nvidia-Powered AI Nurses At $9 Per Hour Aim To Upend Humans Who Cost 10 Times As Much

INTC Stock Prediction 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Intel, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Intel, the 200-day moving average sits at $39.24, according to Benzinga Pro, which is below the current price of $43.18. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

INTC Price Action: Intel shares were up 2.52% at $43.11 at the time of publication, according to Benzinga Pro.

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