By James Hires
Publication Date: 2026-02-02 18:31:00
Intel was once the leader of America’s semiconductor industry but Alphabet’s partner Broadcom is looking like the stronger play in the long term.
The U.S. government made headlines last year when it invested $8.9 billion into Intel and the announcement caused Intel’s shares to grow through the last four months of 2025. But did the government bet on the wrong horse in the artificial intelligence (AI) hardware race?
Lots of people piled into Intel when the government announced its investment, but I don’t think Intel is the best American semiconductor play, even after an almost $9 billion lifeline from Washington.
Image source: Getty Images.
Intel has been on the decline for years with its annual revenue dropping every year since 2021 and more losses projected for the first quarter of 2026. It’s also projecting earnings per share (EPS) of $0 for the first quarter of 2026, which isn’t an auspicious start to the year.
What’s more, the company’s big reinvestment in American…
