Intel stock climbs 7% on report Trump administration is considering stake

Intel shares jumped 8% on Thursday and kept climbing after hours, after Bloomberg reported that President Donald Trump’s administration is in talks to buy a stake in the company.

The idea? Use government cash to prop up Intel’s struggling chip business and keep advanced manufacturing on U.S. soil. The news hit the markets fast, and traders responded even faster. That one headline alone was enough to shoot Intel’s stock straight up.

The deal, if it happens, would send federal money straight into Intel’s new manufacturing sites in Ohio, a project that’s already faced delays and cuts.

Trump has been loud about wanting more chips built in the U.S., and Intel remains the only American company still capable of building the most advanced processors in the country.

Foreign rivals like TSMC and Samsung have factories on U.S. ground, but they’re not domestic players. Trump wants an American company leading that race, and right now, Intel’s the only one even remotely qualified.

Trump slammed the CEO, then invited him to talk

Just days before the equity stake talk broke, Lip-Bu Tan, Intel’s CEO, was publicly called out by Trump, who demanded he step down. Trump accused him of being “highly conflicted” over investments in Chinese tech firms. He posted it straight to his Truth Social platform.

But even after that, Tan still went to the White House for a Monday meeting with Trump, where the equity idea was discussed. That detail was later confirmed by Wall Street Journal. The deal isn’t locked in, and it could still collapse. But the fact that they’re even talking about it, especially after the president’s attacks, says everything.

Intel’s team is trying to stay quiet. A spokesperson said, “We look forward to continuing our work with the Trump administration to advance these shared priorities, but we are not going to comment on rumors or speculation.”

When pressed about Tan’s loyalty, the company said he’s “deeply committed to advancing U.S. national and economic security interests.” That’s as far as they went.

Tan took over as CEO earlier this year after Intel completely botched its attempt to grab a piece of the AI chip market. While competitors like Nvidia were blowing past benchmarks, Intel was stuck with old products and an identity crisis.

To pivot, it dumped billions into a new foundry business, building chips for others. But the results haven’t shown up. No major customers have signed on. Without those deals, the entire foundry plan looks like a long, expensive gamble.

Intel cuts back as Trump expands government control

In July, Tan made a tough call: Intel canceled factory plans in Germany and Poland and said it would slow down spending in Ohio. That same Ohio development is now at the center of this new White House plan. The government stake would keep it alive… for now.

But investors know Intel’s troubles run deeper. This isn’t just about buildings or machines. Intel lost $2.9 billion in Q2, and it hasn’t figured out how to fix its broken lineup. AI chips? Still behind. Business model? Still clunky.

Trump’s not just watching. He’s getting involved. His administration already forced Nvidia and AMD to hand over 15% of their China chip sales just to keep their export licenses. Last week, the Pentagon took a $400 million stake in MP Materials, a rare-earth mining firm.

Then came the “golden share” in U.S. Steel, giving Trump control in the Nippon Steel acquisition. Now he’s eyeing Intel as the next big move.

Inside Trump’s camp, Intel is seen as the only real shot the U.S. has at challenging Taiwan Semiconductor. Everyone else is playing catch-up or building in foreign territories.

Even though Intel is now up 19% for 2025, it’s coming off the worst year in its history, a brutal 60% drop in 2024. Wall Street hasn’t forgotten. Investors want to believe, but they want results more. One bad product cycle, one failed factory deal, and the government stake could turn into dead weight.

Trump’s growing control of tech and heavy-handed intervention in private business isn’t slowing down. But Intel? Still trying to prove it can turn this thing around. They put out a final statement saying, “Intel is deeply committed to supporting President Trump’s efforts to strengthen U.S. technology and manufacturing leadership,” while refusing to say a word about the equity stake.

KEY Difference Wire helps crypto brands break through and dominate headlines fast