Intel (INTC) shares climbed sharply after reports surfaced that the Trump administration is in talks to take an equity stake in the struggling chipmaker.
According to people familiar with the matter, the move could help finance Intel’s long-delayed Ohio semiconductor hub, once pitched as the largest chipmaking facility in the world.
While neither the White House nor Intel confirmed the details, both acknowledged their shared interest in strengthening U.S. technology and manufacturing. Intel’s CEO Lip-Bu Tan met with President Trump earlier this week, only days after the president had publicly called for his resignation over alleged ties to Chinese firms. The discussions reportedly stemmed from that meeting, though the potential size and structure of the investment remain unclear.
A Storied Name, a Strained Position
The news comes at a pivotal moment for Intel, which has been losing ground to Nvidia (NVDA) and Advanced Micro Devices (AMD) in the high-performance chip market, particularly in AI. Despite heavy investment in its foundry business and an $8.5 billion U.S. subsidy package, Intel posted a record $18.8 billion loss in its manufacturing arm last year. Yield issues in its advanced 18A process have delayed the Ohio plant’s timeline into the 2030s.
The news comes at a pivotal moment for Intel, which has been losing ground to Nvidia (NVDA) and Advanced Micro Devices (AMD) in the high-performance chip market, particularly in AI. Despite heavy investment in its foundry business and an $8.5 billion U.S. subsidy package, Intel posted a record $18.8 billion loss in its manufacturing arm last year. Yield issues in its advanced 18A process have delayed the Ohio plant’s timeline into the 2030s.
Operational challenges have piled up: multiple senior executives have departed, workforce cuts are targeting thousands of positions, and Fitch recently downgraded Intel’s credit rating, citing execution risks and profitability concerns. Analysts warn the company could take years to regain design and manufacturing competitiveness, even with government backing.
Politics Meets Production
A government stake in a publicly traded technology company would be an unusual move in modern U.S. markets, raising questions about political influence and corporate autonomy. Proponents argue it could accelerate domestic chip production and help secure supply chains in a strategically vital sector. Critics warn that national involvement in Intel’s operations might not align with shareholder interests—and could create conflicts between commercial priorities and political goals.
Despite the uncertainty, Wall Street responded enthusiastically. Intel shares closed Thursday at $23.86, up more than 7%—their highest since late March—and extended gains in premarket trading to around $24.57. The stock is now up about 23% for the year, outperforming the broader Nasdaq 100.
Conclusion
The prospect of a U.S. government stake in Intel marks a high-stakes intersection of politics, industrial policy, and corporate turnaround. While the potential deal could inject much-needed capital into Intel’s domestic manufacturing ambitions, it doesn’t resolve the company’s core competitive challenges. For now, investors are betting that Washington’s backing could give the chipmaker the time—and resources—it needs to fight its way back into the semiconductor elite.
A government stake in a publicly traded technology company would be an unusual move in modern U.S. markets, raising questions about political influence and corporate autonomy. Proponents argue it could accelerate domestic chip production and help secure supply chains in a strategically vital sector. Critics warn that national involvement in Intel’s operations might not align with shareholder interests—and could create conflicts between commercial priorities and political goals.
Despite the uncertainty, Wall Street responded enthusiastically. Intel shares closed Thursday at $23.86, up more than 7%—their highest since late March—and extended gains in premarket trading to around $24.57. The stock is now up about 23% for the year, outperforming the broader Nasdaq 100.
Conclusion
The prospect of a U.S. government stake in Intel marks a high-stakes intersection of politics, industrial policy, and corporate turnaround. While the potential deal could inject much-needed capital into Intel’s domestic manufacturing ambitions, it doesn’t resolve the company’s core competitive challenges. For now, investors are betting that Washington’s backing could give the chipmaker the time—and resources—it needs to fight its way back into the semiconductor elite.
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