Intel Corp. (NASDAQ:INTC) stock rose Friday as renewed focus on the chipmaker's turnaround and the U.S. government's growing ownership stake boosted investor sentiment. President Donald Trump publicly praised Intel and its CEO, Lip-Bu Tan, underscoring Washington's push to reshore advanced semiconductor manufacturing.
In a Truth Social post following a White House meeting, Trump said he had "just finished a great meeting with the very successful Intel CEO, Lip-Bu Tan," and described the government's investment as profitable for U.S. taxpayers. He framed the stake as part of the administration's effort to bring leading-edge chipmaking back to the U.S.
Details of the U.S. Stake
The U.S. government first took a position in Intel last August through an $8.9 billion investment tied to unpaid CHIPS Act grants and manufacturing awards.
Since then, Intel shares have climbed more than 70%, increasing the value of the government's holding, Bloomberg reported. The U.S. now owns about 5.5% of Intel, with provisions that could lift the stake closer to 10% over time.
Trump claimed the investment has already made "Tens of Billions of Dollars for the American People," though Bloomberg noted realized gains fall short of that figure.
Leadership Shift and Product Milestones
Trump's praise marks a reversal from last year, when he urged Tan to resign after Sen. Tom Cotton raised concerns about the CEO's past investments in Chinese technology firms, CNBC reported.
Tan, who was born in Malaysia and raised in Singapore, has invested in more than 600 Chinese companies, according to Reuters.
Tan became CEO in March, replacing Pat Gelsinger as Intel lost share to rivals including Advanced Micro Devices, Inc. (NASDAQ:AMD), Nvidia Corporation (NASDAQ:NVDA), and Arm-based chipmakers.
Since then, Tan has moved quickly to stabilize the business, including cutting thousands of jobs and scaling back some manufacturing plans in the U.S. and Europe. Intel's Ohio plant is now expected to come online around 2030 or 2031.
At CES this week, Intel announced the availability of its 18A PC chips, which it called the most advanced process technology ever made in the U.S.
Trump highlighted the milestone, describing it as the first "sub-2 nanometer CPU processor designed, built, and packaged" domestically. Intel continues to rely on Taiwan Semiconductor Manufacturing Co. for some production, while investments from Softbank Group Corp. (OTC:SFTBY) and Nvidia have added to investor confidence.
Market Watches for Share Recovery
Analysts remain focused on whether Intel's new products can reclaim lost share. Tan said this week the company began shipping its first sub-2-nanometer 18A products on schedule at the end of 2025.
INTC Price Action: Intel shares were up 2.48% at $42.13 during premarket trading on Friday. The stock is approaching its 52-week high of $44.57, according to Benzinga Pro data.
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