Why Intel Stock Soared Today

Key Points

• Tech stocks got a big boost after the Federal Reserve signaled that an interest rate cut could be coming next month.

• Intel stock also gained ground, thanks to news that the U.S. government is taking a nearly 10% equity stake in the company.

• 10 stocks we like better than Intel ›

Intel (NASDAQ: INTC) stock is leaping higher in Friday's trading thanks to a pair of bullish catalysts. The semiconductor company's share price gained 5.5% in a day of trading that saw the S&P 500 jump 1.5% and the Nasdaq Composite surge 1.8%.

Intel's valuation climbed today thanks to a speech from Federal Reserve chair Jerome Powell that increased hopes among investors for an interest rate cut at the central bank's meeting next month. The stock also got a boost from a report suggesting that the Trump administration was on the verge of announcing that it was on track to acquire a 10% stake in the company.

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Interest rate news boosted Intel stock today

Powell gave a speech this morning that has restored market confidence in a September interest rate cut and the potential for another rate cut later in the year. The Fed has kept rates relatively high in order to combat inflation, but investors have been hoping that the central bank will deliver cuts and create a stronger environment for stocks and other assets.

While Powell said that inflation continued to present challenges, he indicated that weakness in the U.S. economy was looking like the bigger risk factor. His comments seemed to indicate that the Fed is leaning toward cutting rates next month, and they helped power gains for Intel and many other tech stocks today.

Intel also rose thanks to major U.S. investment news

Bloomberg published a report today stating that President Donald Trump was on track to announce that the U.S. government would be taking a nearly 10% equity position in Intel. The official announcement wound up arriving after the market closed today, but Trump did confirm that he had met with CEO Lip-bu Tan and that the U.S. will be taking a 10% stake in Intel.

The development will allow Intel to receive funding that had been apportioned to it through the CHIPS Act. It also opens the door for additional government support as artificial intelligence (AI) chip designs and chip fabrication technologies become increasingly important to the economy and national security.

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Keith Noonan has positions in Intel. The Motley Fool has positions in and recommends Intel. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.