The Trump administration is reportedly in talks to purchase a 10% stake in Intel (INTC), according to numerous White House officials. This comes after Trump previously bashed the company’s current CEO, Lip-Bu Tan, earlier this month, calling for the CEO to resign after alleged ties to China.
JUST IN: 🇺🇸 President Trump's administration in talks to take 10% ownership stake in Intel $INTC. pic.twitter.com/0zySu4jWQU
— Watcher.Guru (@WatcherGuru) August 18, 2025
Shares in Intel (INTC) stock fell after the reports emerged, putting a dent in the stock’s near 18% gain since last week. According to a source close to the White House, the federal government is considering a potential investment in Intel that would involve converting some or all of the company’s grants from the US Chips and Science Act into equity. At Intel’s current market value, a 10% stake in the chipmaker would be worth roughly $10.5 billion.
Furthermore, the White House source also said that the administration could convert other Chips Act awards into equity stakes. It’s not clear whether that idea has gained traction broadly within the administration or whether officials have broached the possibility with any companies that could be affected. The White House has not finalized the plan, and Intel has yet to comment on the proposed stake purchase from the Trump Administration.
More on Intel (INTC) in 2025
In late July, Intel shares sank after the company reported that it would cut its workforce by 15% in an attempt to pare costs as it struggles to revive its ailing chip manufacturing business. Additionally, back in June, Intel disclosed plans to lay off 271 employees in California. It notified officials in Arizona on Monday that it plans to lay off 172 people there. Intel (INTC) is also discontinuing its automotive technology business and laying off most of the workers in that segment.
Also Read: Intel Stock Falls Amid CEO Crisis as Trump Strikes: Intel vs NVIDIA
Intel had received $2.2 billion in grant disbursements as of January. It’s unclear whether that $2.2B would be included in the possible equity stake, whether the company has received additional tranches of its award since Trump took office, and on what timeline Intel would receive money under a possible equity stake. Some analysts have signaled that Trump’s approach to the Intel chipmaker is another rug-pull for major investors, manipulating the market around INTC stock after bashing then praising the company’s CEO. Year-to-date, the chipmaker is one of the better performers on the stock market, up 17% since January 1.
