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Intel (NASDAQ: INTC) stock is getting hit with another round of sell-offs in Wednesday's trading. The company's share price was down 4.6% as of 1 p.m. ET.
Intel is slipping following comments made by President Donald Trump during his speech to Congress yesterday urging the cancellation of the CHIPS Act. The stock is now down roughly 26% from its high point in 2025.
Intel stock slumps after Trump criticizes CHIPS Act
In his speech, Trump laid out his administration's view on tariffs and other aspects of his agenda for the economy and other areas of policy. Trump touted recent commitments to large expansion investments from major tech companies including Apple and Taiwan Semiconductor Manufacturing (TSMC) and criticized the CHIPS Acts approach of directly funding semiconductor companies. Intel was the largest pure-dollar recipient of CHIPS Act funding, and Trump called on Congress to pass legislation canceling the act.
What's next for Intel?
Through the CHIPS Act, Intel had been slated to receive roughly $7.9 billion in direct funding. The company has received $2.2 billion of that total, and it's possible that the additional funding could be canceled if Congress were to pass new legislation. While the makeup of Congress has changed, the CHIPS Act passed with significant bipartisan support, so it's not clear whether Intel is actually in great danger of losing the federal funds.
On the other hand, there is still a lot of uncertainty surrounding the outlook for the company's chip foundry business. Some investors have been hoping that TSMC would step in and buy the unit or partner with Intel to help run its fabrication operations, but the market has turned more cautious on the chances of that happening lately. For better or worse, Intel's near-term stock outlook will likely be heavily impacted by how potential buyouts and federal policies surrounding the U.S. chip industry shape up.
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