Intel (INTC) opened nearly 10% higher on Wednesday after Vice President JD Vance reiterated the White House’s commitment to onshoring the development of advanced artificial intelligence (AI) chips. Vance’s remarks are positive for Intel as a focus on domestic production could see it attract more demand, given it’s one of the very few U.S.-based companies capable of manufacturing high-end AI chips.
Others, including Nvidia (NVDA), design their own chips but rely on Taiwan Semiconductor Manufacturing (TSM) for the actual manufacturing.
After today’s surge, Intel stock is up 15% versus its year-to-date low set on Feb. 7.
Should You Buy Intel Stock After Vance’s Remarks?
The U.S. government’s commitment to onshoring chip production could lead to significant subsidies and support for Intel, which may help it with costs and encourage expansion.
Additionally, a number of U.S. tech companies and government agencies could partner with INTC in search of a reliable supply of domestically produced AI chips.
That makes Intel shares attractive to own after the vice president’s comment at the Paris AI summit.
China’s DeepSeek May Prove to Be a Blessing For INTC
INTC stock is currently down more than 50% versus its 52-week high of $46.63.
Shares of the semiconductor behemoth may be worth owning on the weakness because China-based startup DeepSeek has recently launched a low-cost, highly efficient AI model. DeepSeek-R1 requires fewer computational resources compared to other large language models (LLMs), which may lead to increased demand for Intel’s less powerful but more affordable chips for artificial intelligence enabled tasks.
What Do Analysts Expect for Intel Stock?
Analysts acknowledge the above-mentioned tailwinds, which could help Intel stock extend its ongoing recovery.
While the mean target of $23.98 signals potential upside of another roughly 10% in INTC stock from current levels, the high target of $62 suggests it could actually close to triple from here.
Investors should also note that expectations for Intel’s earnings growth remain exciting. The chip stock is seen growing its earnings by about 87% on a year-over-year basis in 2025, followed by a whopping 609% YOY growth in the year after.
