Intel Stock Dips Amid New Details on Government Deal Structure

Intel shares fell nearly 2.5% Friday as fresh reports revealed additional layers to its CHIPS Act agreement with the TRUMP administration. The deal includes a five-year warrant allowing the U.S. government to purchase an additional 5% stake at $20 per share should Intel's ownership in its foundry business dip below 51%.

CFO David Zinsner downplayed the likelihood of triggering the warrant, stating the company intends to maintain majority control. "From the government's perspective, they were aligned with that," Zinsner noted, emphasizing neither party anticipates a spin-off or sale of the foundry unit.

The market reaction suggests investor unease about potential dilution and government influence, despite Intel's assurances. The semiconductor giant's stock underperformance contrasts with the broader tech sector's momentum, highlighting how structural complexities in major deals can overshadow fundamentals.