Trump's Bill May Boost AI Chip Stocks
Source: businessinsider.com
New Bill to Benefit AI Chipmakers
A law signed on July 4 could provide fresh gains for AI semiconductor stocks. The legislation may lead to further gains for AI semiconductor stocks, offering a significant tax benefit to companies in the chip space.
Tax Credit Details
Under the bill, companies that begin building new chipmaking facilities in the US before 2026 could be eligible for a 35% tax credit, increased from 25%.
Expert Opinions
Shay Boloor, Chief Market Strategist at Futurum Equities, mentioned that Intel and Micron are likely to benefit most immediately. Boloor said Intel's turnaround is connected to Foundry Services, and this credit is beneficial for their capex model. He added that Micron, with its US-based memory investment, is also a quiet winner. Boloor noted that Nvidia is still the sector's top name and that Taiwan Semiconductor Manufacturing Company is likely to receive a boost as well.
Scott Bickley, an advisory fellow at Info-Tech Research Group, stated that the Advanced Manufacturing Investment Credit (AMIC) will benefit manufacturers of US fab plants, specifically for investments by TSMC and Micron, and to a lesser degree, Intel.
Eugenia Mykuliak, Founder & Executive Director of B2PRIME Group, also highlighted the benefits for chipmakers building or planning to build semiconductor facilities in the US. She said it could boost stock performance for companies heavily invested in domestic chip fabrication plants, as investors favor clear policy support for long-term growth. She added that it sends a message that the government is committed to backing the sector, helping companies plan with more confidence.