US Investment Surge Propels Intel Stock to New Heights - Here’s Why It Matters

Intel's stock isn't just climbing—it's riding a massive wave of government-fueled momentum.

Federal cash injections keep turbocharging the chip giant's trajectory, creating a rare bright spot in the semiconductor sector. While other tech stocks wobble on economic uncertainty, Intel basks in the glow of strategic national investment.

Wall Street's betting big on domestic chip production, and Intel's positioned to cash in. The company's becoming the poster child for America's tech sovereignty push—whether that translates to long-term gains or just another government-subsidized bubble remains to be seen.

Because nothing says 'sure thing' like betting your portfolio on congressional appropriations.

Key Takeaways

• Intel shares added to Friday's gains in premarket trading after the U.S. announced it was taking about a 10% stake in the firm.
• The chipmaker said the deal will have Washington purchase 433.3 million shares at $20.24 per share.
• The investment in the struggling company is part of the Trump administration's move to boost semiconductor manufacturing in the U.S.

Intel (INTC) shares added to their Friday gains in premarket trading following word the U.S. had taken about a 10% stake in the struggling chipmaker.

President Donald TRUMP posted on his social media site, Truth Social, on Friday that he negotiated the investment with CEO Lip-Bu Tan, and that it was a "great Deal for America, and, also, a great Deal for INTEL."

Trump noted the U.S. paid nothing for the shares, which he valued at $11 billion. He added that the MOVE was part of his administration's effort to increase domestic semiconductor manufacturing.

The president's post came shortly after Secretary of Commerce Howard Lutnik also announced the acquisition, calling it a "historic agreement [that] strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge."

Intel said the U.S. will acquire 433.3 million primary shares of Intel common stock at for  $20.47 each, which was equivalent to a 9.9 percent stake in the company.

It explained that the money WOULD come from "the remaining $5.7 billion in grants previously awarded, but not yet paid, to Intel under the U.S. CHIPS and Science Act and $3.2 billion awarded to the company as part of the Secure Enclave program."

Tan said Intel was "grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership."

The news lifted shares of Intel 5.5% on Friday to close at $24.80, putting them up almost 24% for the year. They were up a further 2% less than an hour before the opening bell Monday.

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