Trump considering having US take stake in Intel, INTC

The Trump administration is in discussions with Intel about the possibility of the U.S. government taking a stake in the struggling chipmaker, Bloomberg News reported Thursday, citing people familiar with the matter.

Intel’s shares jumped more than 7% during regular trading and rose another 2.6% after hours following the news.

According to the report, the talks were sparked by a meeting earlier this week between President Donald Trump and Intel CEO Lip-Bu Tan. The meeting came just days after Trump publicly called for Tan’s resignation over his investments in Chinese technology firms, including some with alleged links to China’s military.

Intel declined to address specifics but said it remains “deeply committed” to supporting Trump’s push to bolster U.S. technology and manufacturing leadership. “Discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration,” White House spokesman Kush Desai said.

The size and terms of any potential stake are still under negotiation. Such an investment — and the cash injection that comes with it — could aid Intel’s long-running turnaround efforts. Once the clear leader in chipmaking, the company has seen its market value plunge from $288 billion in 2020 to $104 billion today, while its profit margins have fallen to roughly half their historic peaks.

Tan is now tasked with reversing years of missteps that left Intel trailing in the AI chip market dominated by Nvidia, even as heavy spending on contract manufacturing has weighed on the company’s finances.

A deal could also accelerate Intel’s plans to build a massive chip manufacturing complex in Ohio, Bloomberg said.