Trump Administration to Take 10% Stake in Intel, Boosting Stock Amid Struggles

President TRUMP announced Friday that the U.S. government will acquire a 10% stake in Intel, calling it a "great deal" for the nation. The move sent Intel's stock soaring more than 7% in midday trading as investors reacted to the unexpected intervention.

The decision follows Treasury Secretary Scott Bessent's earlier comments about converting Intel's CHIPS Act funding into equity. This lifeline comes as the chipmaker faces mounting challenges—its manufacturing division is hemorrhaging cash while rivals AMD and Qualcomm erode its dominance in PC chips. Nvidia and AMD have also outpaced Intel in the critical AI hardware race.

Once valued at over $200 billion, Intel's market cap has collapsed to $111 billion. CEO Lip-Bu Tan has cut 15% of staff and shelved European expansion plans. Yet the company remains America's only large-scale advanced chip manufacturer, giving it strategic importance in the global semiconductor reshoring effort.

The government's stake coincides with SoftBank's $2 billion investment this week, creating rare positive momentum for the beleaguered company. These developments highlight how geopolitical considerations are reshaping the semiconductor landscape as nations vie for technological sovereignty.