The deal that struggling chipmaker Intel struck with President Donald Trump to give the U.S. government a 10% stake in the company is still under discussion, the White House said on Thursday.
Intel CFO David Zinser said that the semiconductor giant received $5.7 billion from the U.S. government. The investment is part of the U.S. government's decision last Friday to take a 10% stake in the beleaguered computer chip company.
Intel Corporation (NASDAQ:INTC ) Deutsche Bank's 2025 Technology Conference August 28, 2025 11:45 AM ET Company Participants David A. Zinsner - Executive VP & CFO Conference Call Participants Ross Clark Seymore - Deutsche Bank AG, Research Division Ross Clark Seymore Good morning, everyone.
Intel teams with Acronis to power AI-driven cyber threat detection on endpoint devices while boosting performance and efficiency.
The Trump administration is exploring the possibility of acquiring equity stakes in US defense companies, Commerce Secretary Howard Lutnick said Tuesday, following the government's recent 10% stake in Intel Corp (NASDAQ:INTC, ETR:INL). “They're thinking about it,” Lutnick told CNBC, citing Pentagon leaders, when asked whether the administration is considering stakes in contractors such as Lockheed Martin Corp (NYSE:LMT), Boeing Co (NYSE:BA, ETR:BCO), or Palantir Technologies Inc (NYSE:PLTR).
Intel's strategic importance to US security is now validated by major government backing, supporting the call I made at the start of the year. Wall Street's love of a hedge trade keeps Intel suppressed, but the disconnect with peers won't last for long. Intel's fundamentals, scale, and product capabilities position it for a major re-rating as market perceptions shift.
The US is now the proud owner of 10% of Intel. Donald Trump probably won't stop there.
The market is punishing Intel for losses in its product business, ignoring the growing strategic advantage of its new foundry business. Competitors (TSMC, Samsung) moving fabs to the U.S. neutralizes their price advantage and gives Intel, perfectly adapted to Western costs, a unique "home-field advantage". TSMC's strategy of building a technologically "lagging" fab in the U.S. artificially creates a protected niche for Intel's most advanced chips (18A) in the Western market.
Intel outlined several risks with the United States taking a 9.9% stake in the company. In an SEC filing, Intel said the deal could dilute shares and hurt its international business.
Intel (INTC) shares wavered to start the week after surging Friday following news that the U.S. government had reached a deal to take a 10% stake in the embattled chipmaker.
President Donald Trump says he's looking to make more deals like the one he announced last week with Intel (INTC), with the government taking a 10% stake in the chipmaker Friday.
U.S. equities were mixed and little changed at midday as the market awaited more key corporate earnings reports this week, including from Nvidia (NVDA). The Dow Jones Industrial Average and S&P 500 fell, while the Nasdaq gained.