It's not every day the U.S. government takes a stake in a corporation... But President Donald Trump's administration seems to be fond of this practice. It has invested billions of dollars into a handful of firms since the start of Trump's second term.
A 67% Gain After a 'Bullish' Flip on a Tech Giant
By Ethan Goldman, analyst, Chaikin Analytics
It's not every day the U.S. government takes a stake in a corporation...
But President Donald Trump's administration seems to be fond of this practice. It has invested billions of dollars into a handful of firms since the start of Trump's second term.
Now, you might recall news of the U.S. government's "transformational" partnership with rare earth element producer MP Materials (MP) back in July...
In fact, the stock more than doubled in the first two weeks after the initial investment.
The government took a stake in another notable company shortly after MP Materials...
In late August, it bought more than 433 million shares of a tech giant at about $20 per share.
This position gave the U.S. a 10% stake in the company. At the time, that news didn't send the stock sky-high. In fact, the stock barely moved...
Fortunately, investors got relief one month later.
You see, another group invested in the same company that the U.S. government had just taken a stake in. Its investment was smaller – but more meaningful to the market.
The company hadn't done well prior to these investments. But it started soaring soon after.
If you kept tabs on this stock in the Power Gauge, this wouldn't have come as a surprise...
One stock is flashing BULLISH in the Power Gauge – and out of 6,000-plus stocks that Marc's system tracks, this is his No. 1 move. It's an aerospace and defense stock poised to fill a critical gap left by Operation Epic Fury... which explains why the "smart money" is piling in. It's crushing the S&P 500 Index... And Marc believes it could rise 100% or more in the coming months. Your chance to get access at 70% off ends Thursday at midnight. See the details here.
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A New Partnership Drove This Stock's Growth
As you might have guessed by now, I'm talking about Intel (INTC).
On September 18, chip titan Nvidia (NVDA) made a $5 billion investment to "develop AI infrastructure and personal computing products."
As regular readers will recall, I discussed the story on September 26. At the time, Intel's stock had surged more than 36% since the partnership announcement.
However, the Power Gauge still gave Intel a "neutral" rating back then. Our system was cautious on the stock – but I said to keep an eye on it.
Put simply, it was too early to tell if the stock's growth was legitimate or purely hype.
The Power Gauge answered that question on October 23...
That day, Intel's rating in our system flipped to "bullish."
Additionally, a sharp influx of Wall Street's "smart money" led the Power Gauge to issue a related "buy" signal for the stock that day.
Across the following months, our system has flashed another eight positive signals for Intel.
Overall, since the day the Power Gauge turned "bullish" on Intel after the Nvidia partnership, INTC shares are up about 67%. Take a look at the chart below with some data from the Power Gauge...
Today, Intel still earns a "bullish" rating in the Power Gauge. So our system sees more upside ahead for the stock.
Search for Stocks in the Power Gauge Today (for Free)
Normally, you couldn't see the Power Gauge's rating for a stock if you weren't a paid-up member of Chaikin Analytics...
However, we recently decided to change that.
Now you can check a limited version of the Power Gauge's overall rating of three stocks every day – entirely for free.
All you need to do is click this link right here and enter the e-mail address that you use to receive daily issues of the Chaikin PowerFeed.
Now, I'll note that you won't be able to see the complete ratings breakdowns for all the categories in the Power Gauge – or the full data from our system. Those are only available for our paid-up subscribers.
But you can see the overall ratings – like how the Power Gauge flipped Intel to "bullish" in late October before its rapid growth.
And as I said, Intel is still in "bullish" territory. So for now, the Power Gauge still sees room for it to run higher.
Good investing,
Ethan Goldman
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
+0.7%
6
18
6
S&P 500
+1.22%
129
253
120
Nasdaq
+1.82%
20
47
33
Small Caps
+1.38%
649
939
288
Bonds
+0.53%
Consumer Discretionary
+2.21%
5
20
23
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are Bullish. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Consumer Discretionary
+8.04%
Information Technology
+7.65%
Industrials
+5.52%
Communication
+4.24%
Real Estate
+4.1%
Materials
+3.85%
Financial
+3.81%
Health Care
+1.54%
Utilities
+0.43%
Consumer Staples
+0.26%
Energy
-7.0%
* * * *
Industry Focus
Semiconductor Services
25
16
2
Over the past 6 months, the Semiconductor subsector (XSD) has outperformed the S&P 500 by +9.75%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #5 of 21 subsectors.
Top Stocks
DIOD
Diodes Incorporated
CRUS
Cirrus Logic, Inc.
AMD
Advanced Micro Devic
* * * *
Top Movers
Gainers
HOOD
+10.35%
MU
+9.17%
VGNT
+7.86%
DAL
+6.94%
AXON
+5.9%
Losers
AKAM
-6.43%
APA
-6.23%
WFC
-5.7%
CHTR
-4.74%
OXY
-4.62%
* * * *
Earnings Report
Earnings Surprises
C Citigroup Inc.
Q1
$3.06
Beat by $0.43
BLK BlackRock, Inc.
Q1
$12.53
Beat by $1.03
JPM JPMorgan Chase & Co.
Q1
$5.94
Beat by $0.43
WFC Wells Fargo & Company
Q1
$1.56
Missed by $-0.04
JNJ Johnson & Johnson
Q1
$2.70
Beat by $0.02
* * * *
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This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.
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