After the Fed decision yesterday, the US stock market fell with the Dow industrial average falling -507.03 points, the S&P -91.23 points and the NASDAQ -354.69 points.
Today’s encouraging with the premarket prices higher and the gains led by the NASDAQ index which is currently up about 500 points. The S&P index is lagging however with a gain of 67 points while the Dow industrial average is up 253 points.
Chip stocks are moving higher:
- Intel shares are up 8.77% at $131.70. The all-time high price is at $132.75. Pres. Trump said early Thursday that the chip manufacturer had won a deal with Apple.
Recall that the U.S. government purchased through a combination of direct equity investment and support tied to the CHIPS Act, the government acquired approximately 433.3 million Intel shares at an average cost of $20.47 per share, representing an investment of roughly $8.87 billion
With Intel shares trading at $131.00, the government’s stake would be worth approximately $56.76 billion:
- Current value: 433.3 million shares × $131.00 = $56.76 billion
- Original cost: 433.3 million shares × $20.47 = $8.87 billion
- Unrealized gain: $47.89 billion
That equates to a return of roughly 540%, with the government’s stake now worth about 6.4 times its original investment. The gain highlights the dramatic turnaround in Intel’s stock price as investors have become more optimistic about the company’s role in AI chips, advanced manufacturing, and U.S. semiconductor policy.
Other shipment shares are moving higher:
- Micron shares are up 4.99%
- Broadcom shares are up 2.95%
- AMD shares are up 3.73%
- Texas Instruments shares are up 3.96%
- Nvidia shares are up 1.32%
SpaceX shares are not benefiting with a decline of -1.55%.
This article was written by Greg Michalowski at investinglive.com.
