For decades, Intel (INTC) was the crown jewel of the tech industry. It dominated the CPU market, generated tens of billions in annual profits, and was a dividend darling for income investors. But over the past 10 years, Intel has fallen from glory, trying to compete in the AI-driven semiconductor era dominated by Nvidia (NVDA), Advanced Micro Devices (AMD), and Taiwan Semiconductor Manufacturing Company (TSMC) (TSM).
In an unexpected turn of events, Washington has made a strategic investment that has the potential to reshape the relationship between the U.S. government and the tech industry and boost Intel back to glory. The flood of cash, along with the company’s aggressive attempt to turn around its story, has sent its shares up 84.7% year-to-date, compared to the S&P 500 Index ($SPX) gain of 13.1%.
