Market Activity
Semiconductor stocks experienced a rise on Friday following remarks made by former U.S. President Donald Trump, who praised Intel and its CEO.
Intel shares increased by 2% in extended trading on Thursday after Trump posted on Truth Social about a meeting with "the very successful Intel CEO, Lip-Bu Tan." The stock was up 2.63% in early pre-market trading Friday. Other chip and AI-related companies also saw gains, including Broadcom (up 1.66% pre-market), Micron (up 1.36% pre-market), and AMD (up 0.36% pre-market).
Government Investment and Statements
In his statement, Trump asserted that the U.S. Government, as an Intel shareholder, had generated "Tens of Billions of Dollars for the American People" within four months. He also stated, "Our Country is determined to bring leading edge Chip Manufacturing back to America, and that is exactly what is happening!!!"
The U.S. government acquired a 10% stake in Intel through an $8.9 billion investment in August, provided by the CHIPS and Science Act. This investment occurred at a time when Intel had faced challenges. Since the U.S. government announced its stake in the company, Intel's share price has risen by 75%.
European Market and AI Components
Outside the United States, European semiconductor-related companies also advanced. ASML, a manufacturer of advanced computer chip machinery, gained 5.37%, and ASMI, which produces semiconductor manufacturing equipment, rose by 4.53% on Friday.
Memory chip firms have also rallied at the beginning of the year, driven by their essential role in the training and operation of artificial intelligence systems.