Former President Donald Trump recently heralded a significant advancement for Intel and a lucrative return on the U.S. government's investment in the technology giant. His statements highlighted Intel's pioneering new processor and the substantial financial gains reaped by the nation through its strategic shareholding, leading to a noticeable increase in Intel's stock value.
Trump Praises Intel's Innovation and Government's Lucrative Stake
On a recent Thursday afternoon, former President Donald Trump took to social media to commend Intel Corp. (NASDAQ: INTC) on its latest technological breakthrough and the impressive returns generated from the federal government's investment in the company. Following a productive discussion with Intel CEO Lip-Bu Tan, Trump announced that Intel had successfully unveiled the first-ever sub-2 nanometer CPU processor, a product entirely conceived, engineered, and produced within the United States.
Trump emphasized the pride of the United States Government in being a shareholder of Intel, revealing that this ownership, secured just four months prior, had already yielded tens of billions of dollars for the American populace. He described the arrangement as a "GREAT Deal" for both the nation and Intel, reaffirming the country's dedication to re-establishing America as a global leader in advanced chip manufacturing.
This celebratory announcement comes against a backdrop of a previously intricate relationship between Trump and Intel's CEO. In August 2025, Trump had initially called for Tan's resignation, citing concerns over his past venture capital engagements in Chinese technology. However, a pivotal meeting at the White House swiftly altered this dynamic. Subsequently, Trump declared a landmark agreement: the U.S. government would acquire a 9.9% equity stake in Intel for $8.9 billion. This capital injection primarily stemmed from grants reallocated under the CHIPS Act, framed by Trump as a beneficial outcome for taxpayers and the nation, guaranteeing government ownership in exchange for crucial support. Following these developments, Intel's shares experienced an increase of 1.78%, trading at $41.84 in extended hours on Thursday.
This episode underscores the powerful intersection of government policy, corporate innovation, and market dynamics. It highlights how strategic investments and political backing can significantly influence the trajectory of major corporations and the broader economy. The focus on domestic manufacturing, particularly in critical sectors like semiconductor production, reflects a growing national priority to enhance self-sufficiency and technological leadership. The substantial financial returns demonstrate the potential for government-backed initiatives to not only stimulate industrial growth but also to create direct economic benefits for citizens. Furthermore, the narrative illustrates the evolving nature of public-private partnerships, where initial skepticism can transform into mutually beneficial collaborations, ultimately driving progress and prosperity.