Trump Announces Intel CEO Agrees to Give 10% Stake to US Government; Shares Surge Over 7% on Wall Street
By Anubhav Mukherjee | Published August 23, 2025, 12:28 AM IST
In a surprising development on Friday, August 22, 2025, former US President Donald Trump announced that Intel Corporation’s Chief Executive Officer, Lip-Bu Tan, has agreed to allocate a 10% equity stake or approximately $10 billion worth to the US federal government. This announcement, made during a press briefing at the White House, sparked notable investor enthusiasm, with Intel’s shares jumping more than 7% during intraday trading on Wall Street.
Trump Calls Deal ‘Great’ for Intel and the US
Speaking to reporters, Trump described the agreement as a "great deal" benefiting both Intel and the United States. He noted that the arrangement stems from a suggestion he made during discussions with Intel’s CEO. According to Trump, he proposed the US government receive a 10% share in the company to help revitalize Intel’s competitive edge in the global semiconductor market.
“They’ve agreed to do it and I think it’s a great deal for them,” Trump stated. “That’s about $10 billion,” he added, emphasizing the value of the stake.
Trump elaborated on his conversation with Lip-Bu Tan, explaining that he encouraged the chipmaker to allow the federal government to hold an ownership interest. “I said, ‘You know what? I think the United States should be given 10% of Intel,’ and he said, ‘I would consider that,’ and I said, ‘Well, I’d like you to do that,’” Trump recounted.
Intel’s Response and Market Reaction
As of this writing, Intel Corporation has not provided an official comment on the reports of the equity stake deal. Furthermore, the Trump administration has yet to release full details of their discussions with Intel or confirm if similar arrangements are being negotiated with other companies in the tech sector.
The market response was immediate and bullish. Intel’s stock rose more than 7% during Friday’s trading session, hitting an intraday high of $25.23 before closing the day at $24.91. This marked an increase from the previous close of $23.50, according to MarketWatch data.
The chipmaker’s shares have experienced mixed performance over the past few years; despite losing nearly 50% of their value over the last five years, Intel’s stock has delivered over 23% returns in the past year alone. Year-to-date in 2025, shares have gained 23.24%, buoyed by growing investor confidence amid renewed government interest.
Intel’s current market capitalization stands at approximately $102.86 billion as of the close on August 22, 2025. The stock reached a 52-week high of ₹27.55 and a low of ₹17.67 in recent trading, reflecting volatility within the sector.
Context: US Government Interest in Tech Industry Stakes
This announcement comes amid heightened US governmental focus on strengthening domestic capabilities in critical technologies like semiconductors. The chip industry has become a central battleground for global technological leadership, supply chain security, and economic competitiveness.
Trump’s proposal to take an equity stake in a major tech firm like Intel illustrates a novel approach to government involvement, potentially aligning public and private sector interests to bolster national security and innovation. However, questions remain regarding the specifics of the deal, how it will be structured, and its implications for the company’s governance and future strategy.
Looking Ahead
As details unfold, investors and analysts will closely watch Intel’s communications and regulatory filings for confirmation and elaboration on the terms of this potential government stake acquisition. The deal’s impact on Intel’s operations, shareholder value, and US tech competitiveness will be critical factors shaping market sentiment in the coming weeks.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Readers are encouraged to consult financial experts before making investment decisions.
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