The exuberance around Intel appears to be fading fast as the Trump administration's plans to bolster the chipmaker's domestic manufacturing capacity continue to emerge from the haze of speculation, disappointing investors who had pencilled in a greater quantum of support.
To wit, Bloomberg is now reporting that the Trump administration is mulling a 10 percent stake in Intel, which amounts to an investment of little over $10 billion, as per the chipmaker's current market cap.
Intetestingly, Intel shares have tumbled by 5 percent since this report emerged, indicating pervasive disappointment among investors.
Do note that the Trump administration's entire raison d'être behind this move was to jump-start Intel's much-delayed Ohio fab, which is currently expected to go online in the 2030s at the earliest.
As such, investors appear to be betting that a ~$10 billion investment in Intel might not be enough to accelerate the commissioning of the Ohio fab.
Meanwhile, as we reported last week, the Trump administration is purportedly mulling the use of CHIPS Act funds to partially finance a stake in Intel.
Do note that that only $2.7 billion in residual funds remain under the CHIPS Act. However, Bloomberg is now reporting that the Trump administration is considering converting the CHIPS Act funding that Intel has already received into equity, further pressuring Intel's shares in the process.
Bear in mind that the discussion around a potential US government stake in Intel first emerged during the meeting between the company's CEO, Lip-Bu Tan, and President Trump in the White House earlier this week, where the former was reportedly able to win over the latter, with the President making a jarring volte-face in the aftermath, pivoting away from his earlier characterization of Intel's CEO as a national security threat and demanding his resignation, to heaping praise on Tan's "success and rise," and going so far as to term the CEO's achievements an "amazing story."
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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