Intel Secures $5.7B U.S. Government Funding Amid Semiconductor Race

Intel Corp. confirmed receiving $5.7 billion in funding from the U.S. government in exchange for an equity stake, aligning with the TRUMP administration's push to bolster domestic semiconductor and AI capabilities. The deal, which includes a 10% stake acquisition by Washington, has sparked investor concerns over governance and potential conflicts of interest.

Shares of INTC dipped following the announcement, reflecting market apprehension. The WHITE House hinted at converting additional Chips Act awards into equity stakes, though broader administrative support remains unclear. Intel cautioned about possible litigation and scrutiny in its corporate filings.

Analysts remain cautious, with GuruFocus reporting an average one-year price target of $21.97 among 34 analysts. The stock currently trades mid-range of its 52-week high and above its 200-day moving average.