Intel Shares Rise on Report of Potential U.S. Government Stake
Intel stock extended its gains on Friday after a Bloomberg report said the Trump administration is discussing the possibility of the U.S. government taking a stake in the chipmaker.
The stock, which closed Thursday up 7.4% at $23.86, gained another 3.6% in morning trading Friday.
Sources familiar with the matter said the potential investment would support Intel’s push to expand domestic semiconductor manufacturing, especially its delayed factory hub in Ohio. Intel has previously said the site could become the world’s largest chipmaking facility.
The talks reportedly follow a meeting this week between President Donald Trump and Intel CEO Lip-Bu Tan, after Trump criticized Tan for his ties to China.
Semiconductor Strategy and Government Involvement
The possible investment aligns with U.S. efforts to strengthen domestic chip production amid supply chain security concerns and rising competition with China.
Bloomberg later reported that the government is considering using U.S. Chips Act funds to acquire the stake. Options include converting existing grants into equity, providing new funds, or combining Chips Act financing with other sources.
Intel has already secured $7.9 billion in commercial semiconductor grants, up to $3 billion for the Pentagon’s Secure Enclave program, and access to $11 billion in loans under the 2022 law. Talks between Intel and the U.S. government remain fluid.
Analyst Caution Amid Optimism
Despite the stock’s rally, some Wall Street analysts remain cautious. Jordan Klein of Mizuho advised against buying based on the headlines, though he also discouraged adding short positions.
Klein noted speculation that Trump wants major U.S. chipmakers to shift advanced orders from TSMC to Intel. By tying Chips Act funding to speeding up the Ohio fab project, Trump could gain political points in a swing state and push U.S. customers toward Intel.
However, Klein warned that Intel’s biggest hurdle is not funding but lagging technology compared to TSMC. Some industry voices suggest a better approach would be to separate Intel’s manufacturing unit for targeted government support.
“They have no customers and there is a good reason for that,” Klein said. “Just ask these customers.”
