Intel Agrees to Grant U.S. Government Equity Stake, Shares Rise 7%

Intel shares surged 7% in late-afternoon trading following President Trump's announcement that the chipmaker has agreed to grant the U.S. government a 10% equity stake. The deal, expected to be finalized after market close or in coming days, marks a significant MOVE in industrial policy under the CHIPS Act framework.

The White House framed the arrangement as mutually beneficial, with President TRUMP emphasizing Intel's willingness to participate. "They've agreed to do it and I think it's a great deal for them," he told reporters ahead of meetings with CEO Lip-Bu Tan.

This development reflects growing government intervention in strategic tech sectors, with semiconductor production becoming a national priority. The equity stake comes in exchange for federal funding aimed at bolstering domestic chip manufacturing capabilities.