Millions of People Will Be Blindsided in 2023. Will You Be One of Them?

On December 13, Louis Navellier, Eric Fry & Luke Lango will reveal the major events that could rock the markets in 2023. Will your money be safe?

Tue, December 13 at 4:00PM ET
 
 
 
 

Semiconductor Stocks NVDA, AMD, INTC Gain Ahead of CHIPS Act Vote

  • Semiconductor stocks are up and trending today.
  • The Senate could consider legislation that would help U.S.-based chipmakers tomorrow.
  • Some chipmakers may oppose the legislation.
semiconductor stocks - Semiconductor Stocks NVDA, AMD, INTC Gain Ahead of CHIPS Act Vote

Source: Shutterstock

Semiconductor stocks,  including Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC), are climbing and getting a great deal of attention from retail investors today. Their rally comes as Reuters reports that the Senate may consider legislation, called the CHIPS Act, to help U.S. based chipmakers as soon as tomorrow. The bill would provide funds and tax breaks to American semiconductor manufacturers.

Republicans May Block the Legislation

Some Senate Republicans may seek to block the legislation tomorrow, as Senate Minority Leader Mitch McConnell, a Republican, has indicated that the GOP will support subsidies for chip manufacturers but it is unclear if his party will support tax breaks for them. McConnell has said that the GOP would block some of Democrats’ pro-industry agenda as long as they seek to advance a budget bill that the Republicans oppose.

Some Chipmakers Could Oppose the Bills

Meanwhile, a number of chipmakers may lobby against the Senate legislation that would potentially aid the sector. They believe that the bills “disproportionately benefits manufacturers like Intel,” Reuters stated, citing unnamed sources.

AMD, Qualcomm (NASDAQ:QCOM) and Nvidia, which do not directly manufacture chips, are supporting separate legislation that’s under consideration in the House. Unlike the Senate bill, which would primarily benefit chip manufacturers, the House’s legislation would directly help the three chip designers. The latter three companies only design semiconductors and pay other firms to manufacture them. The House bill would provide both designers and manufacturers of chips with tax breaks.

Semiconductor Stocks Are Rising, so Are Intel’s Prices

U.S. chipmaker Intel plans to increase the prices on a portion of its products “due to inflationary pressures,” the company told Seeking Alpha. The hikes may be implemented within several months and could range as high as 20%.

The semiconductor stocks rallying in pre-market trading included Intel, up 1.2%, Nvidia, which was climbing 3.6%, and AMD which was advancing 1.9%.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.


Article printed from InvestorPlace Media, https://investorplace.com/2022/07/semiconductor-stocks-nvda-amd-intc-gain-ahead-of-chips-act-vote/.

©2022 InvestorPlace Media, LLC