Government takeover speculations boost Intel's stock value
U.S. Government to Invest Nearly $10 Billion in Intel
In a surprising turn of events, the U.S. government is set to purchase a nearly 10% stake in Intel, worth approximately $8.9 billion. This agreement, confirmed by President Donald Trump and Intel in August 2025, includes around $6 billion funded via previously awarded grants from the U.S. CHIPS and Science Act.
The investment reflects a historic commitment to advancing U.S. semiconductor manufacturing and technology leadership, according to Intel's CEO. Notably, the government will not acquire voting or governance powers as part of this investment.
This move marks a significant departure from U.S. policy, where federal government ownership of private companies is rare. Similar government equity stakes mostly occurred during the 2008-2009 financial crisis and were later sold off.
The idea for the potential investment is said to have come from a meeting between Trump and Intel CEO Lip-Bu Tan this week. Intel's deal comes amid the company's restructuring and pressure on its CEO, and shortly after SoftBank also made a $2 billion investment in Intel.
Intel's shares surged more than seven percent due to this potential investment. However, the company faces increased pressure in its core business of PC processors and chips for data centers. Nvidia has taken a leading position in the chips for artificial intelligence market, a sector where Intel, once a dominant player in the semiconductor market, has been struggling for years.
In related news, under Trump, the U.S. government has acquired a "golden share" in the takeover of American steelmaker US Steel by Japanese rival Nippon Steel. Intel's CEO, Lip-Bu Tan, is scheduled to present recommendations to the U.S. government next week, but the details of these recommendations remain undisclosed.
Plans are still in flux regarding the potential investment, and further updates are expected in the coming weeks.
[1] Bloomberg, August 2025. [2] CNBC, August 2025. [3] White House statement, August 2025.
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