Intel (NASDAQ: INTC) stock dropped 5% on Monday after a Bloomberg report said the Trump administration is considering taking a 10% stake in the U.S. chipmaker.
The federal government is reportedly weighing whether to convert some or all of Intel’s $10.9 billion in Chips and Science Act grants into equity. Based on Intel’s current market value, a 10% stake would be worth about $10.5 billion. However, sources familiar with the matter said the exact size of the potential stake—and whether the administration will move forward—remains uncertain.
The White House has not confirmed any specific details.
The report also suggested that other Chips Act awards could be converted into equity stakes. Still, it is unclear whether the proposal has broader support within the government or if discussions have taken place with other chipmakers.
Last week, news of a potential government investment fueled a sharp rally in Intel shares, sending the stock up 23% for its best weekly performance since February. But on Monday, investors reassessed the implications, leading to a pullback in the stock price.
