Key Points in This Article: The Trump administration's potential stake in Intel's (INTC) $28 billion Ohio facility sparked a 7% stock surge yesterday and another 5% rise today.
Interest from the US government potentially signals Intel as a critical player in U.S. semiconductor and national security strategy. The company's renewed strategy focuses on revamping its foundry business, launching Panther Lake on 18A, and moving toward full-stack AI solutions. The stock trades at deep valuation discounts, reflecting low expectations and past execution missteps.
CNBC's Eamon Javers joins 'Squawk Box' with the latest news from Intel.
Intel Corp (NASDAQ:INTC, ETR:INL) shares jumped 11% after hours on Thursday, adding about $10 billion to its market value, after reports the US government is considering taking a stake in the chipmaker. Bloomberg said the move could help fund Intel's long-delayed chip manufacturing complex in Ohio, first announced in 2022 as a $20 billion project with potential expansion to $100 billion.
Intel Corporation hit rock-bottom more so after getting dissed by President Trump last week, but this week comes with positives with the Monday White House meeting leading to a potential government stake. Trump is cutting deals and CEO Tan's Intel is the latest target in a good way; the government stake could give legs to the foundry growth story. Even before today's pop, INTC outperforms the S&P 500 YTD. We think it could be on its way to break the $30 mark, something that hasn't happened since last August.
Intel (INTC) shares surged Thursday following a report that the Trump administration is considering taking a stake in the struggling chipmaker.
Major U.S. equities indexes were little changed Thursday after a report showed the latest Producer Price Index, a key measure of wholesale inflation, rose more than economists expected in July.
A new report says the U.S. government could take a financial stake in Intel, which would be its biggest venture yet into private business for national-security reasons.
This is a developing story. Check back for updates.
The plan stems from a meeting this week between President Trump and Intel CEO Lip-Bu Tan, the report added.
Trump's backing of CEO Lip-Bu Tan boosts Intel's turnaround push as the chipmaker targets AI growth despite financial headwinds.
The government's stake would help fund factories it's currently building in Ohio, according to the report.