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Shares of Intel (INTC 5.62%) are moving higher on Friday, up 5.5% as of 12:50 p.m. ET. The jump comes as the S&P 500 (^GSPC 0.56%) was up 0.3% and the Nasdaq Composite (^IXIC 0.34%) was flat.

The chipmaker’s stock is gaining after The Wall Street Journal reported that President Trump is considering a tariff on semiconductor companies that rely too heavily on foreign manufacturers.

New tariffs could be coming soon

The Journal reported this morning that President Trump is considering a tariff on chipmakers that manufacture more chips overseas than in the U.S. If companies don’t maintain at least a 1-to-1 ratio of chips fabricated domestically to internationally, they could soon face a stiff tariff.

The move is part of the Trump administration’s effort to boost domestic chip manufacturing, a cornerstone of the administration’s national security strategy, as well as its broader efforts to reshore American manufacturing.

Image source: Getty Images.

The news comes just a month after the administration reached an agreement that makes the federal government a significant shareholder in Intel, with a roughly 10% stake in the ailing chipmaker.

Intel has its work cut out for it

The federal government isn’t the only one investing in Intel. Just last week, Nvidia announced it would invest $5 billion and partner with Intel to enhance some of its artificial intelligence (AI) data center products. These are good partners to have, but Intel has much further to go in its turnaround efforts.

The dominant U.S. chipmaker for years, the company fell behind in the age of generative AI. Its top and bottom lines have taken a severe beating, and the company has gone through significant restructuring and major layoffs in an attempt to stabilize its balance sheet.

I do think that Intel is on the right track, however. For investors comfortable with risk, Intel is a good pick.

Shares of Opendoor Technologies (OPEN 13.23%) are soaring on Wednesday, up 6.5% as of 2:58 p.m. ET. The jump comes as the S&P 500 (^GSPC -0.11%) lost 0.6% and the Nasdaq Composite (^IXIC -0.17%) lost 0.9%.

A regulatory filing from the company, as well as the Federal Reserve’s rate cut confirmation, is sending Opendoor stock flying.

Opendoor is expanding its reach

The company filed an 8-K disclosure with the SEC, revealing that it “intends to expand its product offerings to allow [Opendoor] to provide services through the entire continental United States in the coming weeks, through one or more of its direct cash offer, cash plus, or working with its partner agents to provide listing services.”

The revelation that the company is officially expanding to the entire U.S. market is fueling investor enthusiasm.

Image source: Getty Images

Powell confirms rate cut is here

Federal Reserve chairman Jerome Powell confirmed today that the central bank will cut the federal funds rate by 0.25%. Rate cuts generally boost equities across the board, but as a real estate company, Opendoor’s bottom line is directly impacted by interest rates. Lowered rates will help improve the company’s margins.

Opendoor still has to prove its business model can work

While the digital real estate disruptor operates in a market with genuine potential for innovation, the economics of its model remain unproven. The company is operating at a loss and relies heavily on debt, making it sensitive to interest rates, and the real estate market doesn’t look particularly strong. I would avoid Opendoor stock.