Intel Set to Thrive Amid National Security Focus, Geop. shift

Recent meetings between Donald Trump and leaders in the semiconductor and defense sectors signal a renewed focus on national security as a key pillar of U.S. industrial policy and Intel (INTC) is well-positioned to benefit.

Just as companies like Lockheed Martin (LMT) and Northrop Grumman (NOC) thrive in times of geopolitical tension, Intel is emerging as a strategic asset in the race for technological sovereignty. With tensions in the Taiwan Strait remaining high, the U.S. cannot afford to rely solely on overseas chip production especially from Taiwan’s TSMC.

If Taiwan were to move all its chip production to the U.S., it would lose a major piece of leverage in deterring Chinese aggression. The current dependency on Taiwan for high-end semiconductors is, paradoxically, part of what keeps the U.S. actively invested in Taiwan's security. If that dependency disappears, so might the urgency of a military defense. Taiwan knows this and so do American policymakers.
That’s where Intel comes in.

Unlike TSMC, Intel is American-owned, American-operated, and expanding its U.S. manufacturing footprint through CHIPS Act incentives. The company is central to creating a secure domestic chip supply chain — not just for consumer electronics, but for defense systems, AI infrastructure, and future-critical technologies.

As national security and economic policy continue to align, Intel is likely to receive more political backing, more investment, and more long-term contracts just like the big defense contractors.

On the weekly chart, INTC has recently printed a lower low in price, but with a higher low on the RSI a classic bullish divergence on a high timeframe. The stock broke below its previous weekly low but quickly bounced, showing signs of demand at lower levels. The weekly RSI is climbing while price made a new low indicating weakening bearish momentum and potential for a trend reversal. First resistance lies at $38 (orange line), followed by a breakout level around $44. A weekly close above $44 could open up a move toward $50+.

The technical setup supports the bullish macro thesis. With a bullish divergence forming on the weekly timeframe, Intel may be setting up for a longer-term trend reversal. Combine this with its growing strategic importance to U.S. national security, and this could be a solid mid-to-long-term play.