Hayek warned of the danger of government ownership stakes in major companies.
The Nasdaq dropped nearly 290 points (1.3%) by around noon Tuesday, as shares of Nvidia (2%), Intel (7%), Palantir (5%), AMD (2%) and Broadcom led a broader tech selloff. Other firms, including Micron (5%), Tesla (3%), Amazon (2.1%), Apple (1.6%) and Microsoft (0.8%) also declined.
Intel Corp (NASDAQ:INTC, ETR:INL) is in discussions with several large investors to raise fresh capital through a discounted equity infusion, according to a CNBC report citing people familiar with the matter. The talks follow a $2 billion investment from Japan's SoftBank, which purchased shares at $23 each, slightly below the company's recent closing price of $23.66.
Intel is in talks with other large investors to get an equity infusion at a discounted price, sources told CNBC's David Faber. It comes after SoftBank announced it would invest $2 billion in the struggling chipmaker.
The Nasdaq Composite had its second-biggest decline since April on Tuesday.
Key Points in This Article: President Trump's 10% Intel stake uses CHIPS Act funds, potentially making the government its largest shareholder.
A series of jumps in Intel Corporation's NASDAQ: INTC stock price during the middle of August has sent shares of the tech sector giant above the $25 mark on massive trading volume. This multiday rally was the market's recognition of a fundamental transformation in the company's investment story.
TSMC is a clear leader in advanced chip manufacturing, benefiting from AI-driven demand and strong client relationships, in my opinion, justifying its premium valuation. TSMC's global expansion and U.S. investments help mitigate geopolitical risks, positioning it well for long-term growth despite tariff uncertainties. Intel is getting a lot of spotlight attention over new investments and interest from Trump, but I don't see their business competing with that of TSMC anytime soon.
Intel's shares fell more than 1% to $25.02 in early trading Wednesday after surging nearly 7% on Tuesday. Shares of AMD, which fell more than 5.4% on Tuesday, were down 1.4% more in the premarket.
Intel stock (NASDAQ: INTC) surged nearly 7% on Tuesday after reports that the Trump administration could take a 10% stake in the company by converting CHIPS Act grants into equity. Moreover, Japan's SoftBank also revealed a $2 billion investment it had made betting on Intel's revival.
Intel remains a Buy, with 10–25% upside, driven by turnaround potential and low market expectations. Government backing, SoftBank's $2B investment, and asset sales reduce downside risk and support Intel's strategic repositioning. Key risks include execution delays, foundry losses, and financial strain, but Intel's cash and incentives provide a buffer.
Intel looks to be set to get the U.S. government as a shareholder. The Trump administration could pursue equity stakes in other companies including Taiwan Semiconductor Manufacturing