Intel Stock Jumps 9% on Chip Price Hike Report, US Stake Gains $36 Billion

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Intel stock (INTC) climbed as much as 9.5% on Tuesday following a supply chain report that said the company will raise personal computer processor prices by roughly 10% in early October.

The move lifted the value of the US government’s 9.9% Intel holding to a paper gain of about $36 billion. Washington bought that stake in August 2025.

Intel Stock (INTC) Performance. Source: Yahoo FinanceIntel Stock (INTC) Performance. Source: Yahoo Finance

Why a Price Increase Pushed Intel Stock Higher

Higher prices normally read as bad news, because they can push buyers away. However, investors took this one differently.

They treated the increase as a sign that Intel will defend profit on each chip rather than chase sales volume. Chief Executive Lip-Bu Tan has been cutting low margin product lines since late 2025. Intel has not confirmed the timing or which chips are affected.

Northland Securities also raised Intel to Outperform from Market Perform on Tuesday, with a $120 price target. The firm cited turnaround progress, a shortage of server processors, and Musk’s Terafab chip project.

Washington’s Stake and a Foundry Milestone

Under an August 2025 agreement, the US government paid $8.9 billion for 433.3 million Intel shares. The price was $20.47 each, or 9.9% of the company.

At about $105 a share, that holding is worth roughly $45.5 billion. The unrealized gain works out near $36.6 billion.

Notably, however, the stake has been worth more. BeInCrypto reported in May that the paper profit had reached $47.6 billion after an Apple chip deal. Intel has since slipped from its summer peak. President Trump has repeatedly promoted Intel’s gains on social media.

Intel and ASML separately said Intel has run more than one million silicon wafers through its High-NA extreme ultraviolet (EUV) machines. Wafers are the discs that chips are cut from. The machines are the newest tools for printing circuit patterns onto them.

The count covers testing and research as well as production. Intel has still not confirmed the October price increase. Whether computer makers absorb it should show in third quarter results due late October.

Disclaimer: The content presented above, whether from a third party or not, is considered as general advice only. CFD trading involves significant risk of loss. Past performance does not guarantee future results. This article serves informational purposes only and does not constitute financial advice. Consider your risk tolerance before trading.

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