Intel Shares Surge as Trump Administration Reportedly Considers Stake Purchase

Intel’s stock jumps 7% following reports that the Trump administration is in talks to acquire a stake in the U.S. chipmaker, aiming to boost domestic high-tech production.

Intel Stock Spikes on Washington Speculation

On August 14, Intel shares rose 7% after Bloomberg reported that the Trump administration is in discussions to purchase a stake in the struggling semiconductor giant.
The move is seen as part of a broader effort to fund Intel’s new manufacturing facilities in Ohio and strengthen the U.S. semiconductor supply chain.

Intel’s Strategic Role in U.S. Semiconductor Industry

Intel remains the only U.S.-based company capable of producing the most advanced chips domestically, while rivals such as TSMC (Taiwan) and Samsung (South Korea) operate U.S. plants but still rely heavily on overseas manufacturing.
President Trump has repeatedly emphasized the need to ramp up domestic production of semiconductors and high-tech goods to safeguard national security and global competitiveness.

High-Level Meeting at the White House

Earlier this week, Intel CEO Lip-Bu Tan met with Trump at the White House, just days after the president publicly called for his resignation over alleged ties to China.
Intel responded by stating that Tan is “deeply committed to advancing America’s national security and economic interests” and declined to comment on the stake purchase rumors.

Challenges in Intel’s Manufacturing Ambitions

Taking the helm in early 2025, Tan inherited a company facing:

Falling behind in the AI chip race

High capital expenditure for new fabrication plants

Lack of major clients for its contract manufacturing division

By July, Intel had scrapped plans for factories in Germany and Poland and slowed construction on the Ohio project to cut costs.

Trump Administration’s Growing Role in Industrial Deals

The current administration has ramped up direct intervention in strategic industries:

Imposing a 15% revenue levy on Nvidia and AMD sales to China

The Pentagon’s $400 million equity investment in rare earth miner MP Materials

Holding a “golden share” in U.S. Steel as part of the Nippon Steel acquisition deal

Intel’s Market Recovery

After suffering a historic 60% share price drop in 2024, its worst year ever, Intel stock has rebounded 19% year-to-date in 2025.
The prospect of U.S. government involvement as a shareholder has rekindled investor optimism in the legacy chipmaker.