Benzinga - by Chris Katje, Benzinga Staff Writer.
Chipmaker Intel Corporation (NASDSAQ:INTC) saw shares trade higher Tuesday on the heels of receiving funding from the U.S. Department of Commerce.
Here's the latest and how some members of Congress could benefit.
What Happened: Intel signed a non-binding preliminary memorandum of terms (PMT) for $8.5 billion in funding from the Department of Commerce. The deal was reported to be in the works for several days.
The funding, which will help Intel with several new initiatives, is part of the CHIPS and Science Act. Signed by President Joe Biden in 2022, the CHIPS Act will provide around $280 billion to help support semiconductor production in the United States.
Intel will use the funding to help with its highly anticipated Arizona plant, which has a price tag of around $20 billion.
"Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor innovation," Intel CEO Pat Gelsinger said.
The funding for Intel could help power the company's growth in the future and reward shareholders.
"AI is supercharging the digital revolution and everything digital needs semiconductors."
Several members of Congress own shares of Intel, which comes as trading by congressional members has become a hot topic, drawing increased attention and scrutiny over potential conflicts of interest.
- Jonathan Jackson (D-Ill.) bought $15,000 to $50,000 worth of INTC shares on Jan. 8, 2024.
- French Hill (R-Ark.) bought $1,000 to $15,000 worth of INTC shares on Nov. 22, 2023.
- Daniel Goldman (D-N.Y.) bought $15,000 to $50,000 worth of INTC shares on Jan. 31, 2023.
Related Link: 10 Best Stock Traders In Congress In 2023 (Spoiler: Nancy Pelosi Has Reentered The Chat)
Why It's Important: The CHIPS Act has become a key topic when discussing the stock and options trading activity of members of Congress.
Former Speaker of the House Nancy Pelosi came under fire when a stock disclosure showed that she owned shares of NVIDIA Corporation (NASDAQ:NVDA) before the approval of the CHIPS Act. The transaction, which was done by her husband venture capitalist Paul Pelosi, came before Pelosi travelled to Taiwan in support of the semiconductor sector.
The Pelosis later sold their Nvidia shares at a loss, missing out on millions of dollars in profit, with the trade potentially coming due to public pressure on the timing of the trade.
In 2023, the Pelosis once again disclosed a trade involving Nvidia that has generated over $1 million in potential profits.
Technology was one of the most active sectors for Congress trading activity and semiconductor companies like Nvidia and Intel have remained popular.
The heightened interest in artificial intelligence could advantage these companies, but the scrutiny might intensify on Congress members holding these stocks, especially if government contracts and sector funding are involved.
INTC Price Action: Intel shares trade at $42.01 versus a 52-week trading range of $26.68 to $51.28. Shares of Intel are up 45% over the last year.
Read Next: Senator Tommy Tuberville’s Latest 2 Stock Trades Attract The Wrong Kind Of Attention: ‘Should This Be Allowed?’
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