Trump Administration Considers Equity Stake in Intel

If completed, this would be one of the most significant federal interventions in the technology sector since the financial bailouts of 2008.

Intel’s Current Challenges

Intel recently reported a quarterly loss of $2.9 billion, compared to a $1.61 billion loss during the same period last year. Despite a 10% annual rise in its stock price, Intel’s performance has lagged far behind competitors like Nvidia, which has seen growth of over 36% during the same time.

Under CEO Lip-Bu Tan, the company has announced a 15% workforce reduction and paused construction at several new semiconductor factories. President Trump has called for Tan’s immediate resignation, citing concerns about his business ties with Chinese firms.

Strategic Importance

The U.S. government’s interest in Intel reflects growing concern about competition with China in artificial intelligence and advanced semiconductor manufacturing. A government stake of up to 10% would make Washington one of Intel’s largest shareholders.

U.S. Government Acquires 10% Stake in Intel

President Donald J. Trump announced that the United States has officially taken ownership of 10% of Intel. The U.S. government has agreed to invest $8.9 billion in Intel by purchasing 433.3 million new shares at $20.47 each, giving it a 9.9% stake in the company. As part of the deal, the government will also receive a five-year warrant to buy an additional 5% of Intel’s common shares at $20 per share, which can be exercised if Intel’s ownership in its foundry business drops below 51%.

Trump Defends Intel Deal

Update: August 25, 2025

Donald Trump said he paid “zero” for Intel, now worth around $11 billion, and argued that the entire gain benefits the U.S. He questioned why critics are unhappy, adding that he would continue making such deals for the country.