This Was the Top-Performing Stock in the Nasdaq-100 in August 2025

Key Points

• Intel led the Nasdaq-100 with a 23% gain in August 2025, driven by a unique government investment.

• The Trump administration acquired 9.9% of Intel for $8.9 billion, converting CHIPS Act grants into equity.

• The stock remains down 34.9% over the past two years, despite government backing.

• 10 stocks we like better than Intel ›

The Nasdaq-100 market index had a pretty average month in August 2025. The index score rose 0.9%, lagging behind the rival S&P 500's 1.9% gain.

But a few of the 101 stocks on the tech-heavy Nasdaq-100 index pulled their weight and more. Above all, microchip maker Intel (NASDAQ: INTC) posted an index-leading 23% return. The reason for Intel's big gain was quite unusual.

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Uncle Sam buys into Intel

The Trump administration gave Intel a helping hand on Aug. 23, setting up an $8.9 billion investment in Intel's stock. The U.S. government is now a large Intel investor, owning 9.9% of the company's shares. They were bought at $20.47 per share, roughly 18% below the market value on the day of the announcement.

The deal did not include rights to board seats or special government access to Intel's executives. It did include the option to buy another 5% stake through warrants, but only if Intel loses ownership of its chip manufacturing business within the next five years. Moreover, most of the financing is part of earlier government agreements, such as the CHIPS Act and the Secure Enclave program. The payments were simply accelerated.

How the government acquired these shares without visible dilution remains unexplained nearly three weeks later. How did the government build a 9.9% stake without diluting existing shareholders or purchasing on the open market? I don't know, but it happened -- somehow.

Intel's stock surge isn't as impressive as it looks

Intel's stock didn't skyrocket when the government deal was officially announced. Instead, it rose slowly as the unexpected and often contradictory details leaked out over several weeks.

The surge looks impressive in the short term, but loses power when you zoom out a bit. Investors don't see this government deal as a game-changer. Intel's stock dropped 11.6% in July due to an underwhelming earnings report, so it's up only 8.7% across July and August. It's also down 34.9% in two years, as of this writing on Sept. 11.

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Anders Bylund has positions in Intel. The Motley Fool has positions in and recommends Intel. The Motley Fool recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.