The value of the US government stake in Intel Corp. has increased fourfold to hit a value of about $36 billion after the chipmaker’s financial outlook showed a resurgence in sales.
That’s the equivalent of an almost $27 billion return on paper since Intel and the government announced the investment in August. Chief Executive Officer Lip-Bu Tan secured the unconventional investment following a charm offensive to win over the White House and repair relations with President Donald Trump, who’d called for Tan’s ouster.
Details of the investment deal
The White House announced a deal that will likely see the US taxpayer owning 433.3 million shares of the company once certain conditions are met. The agreement priced the shares at $20.47 apiece, valuing the stake at $8.9 billion. Taxpayers own more than 270 million shares directly, with some shares held in an escrow account. The paper valuation assumes that the US exercises all of its acquisition rights under the deal.
Broader push to back key industries
Besides its investment in Intel, the Trump administration has announced more than a dozen other deals to bolster critical industries including rare earths, steelmaking and nuclear power. Trump is now considering a possible financial rescue of struggling Spirit Airlines that could give the US government the option to own as much as 90% of the carrier once it emerges from bankruptcy.
“We were the chip capital of the world,” Trump told reporters in Washington on Thursday. And now Intel is “coming back. All the chip companies are coming back.”
Intel shares rose 24% to $82.54 in New York on Friday. The percentage gain — Intel’s biggest since 1987 — propelled the stock to an all-time high.
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Published on April 25, 2026