Intel Stock Declines as U.S. Government Considers Equity Stake
Intel shares dropped 7% midday Wednesday as markets reacted to potential U.S. government intervention. Commerce Secretary Howard Lutnick confirmed negotiations about taking a 10% stake in exchange for CHIPS Act funding—a move that WOULD dilute existing shareholders but could strengthen Intel's market position.
The semiconductor giant's struggles continue amid its AI infrastructure push, compounded by recent news of a separate $2 billion investment from an undisclosed party. Investors appear wary of equity dilution despite potential long-term strategic benefits from government partnership.