Intel Gets $8.5 Billion in Subsidies to Fuel AI Chip Expansion, But High Valuation Raises Questions

Intel awarded $8.5 billion in subsidies from U.S. Commerce Dept to expand semiconductor production
Analyst Trip Chowdhry raised Intel's price target to $100 per share, over double its current price
Chowdhry believes Intel leading in power-efficient "next gen" AI processors needed for AI revolution
$8.5 billion covers about half of Intel's 2021 cash spending on expansion; free cash flow negative until 2026
Risks include aggressive $100 target given low 2021 EPS of $0.40 per share, implying trailing P/E of 250