Intel Stock Skyrockets After Report of U.S. Government Eyeing Stake in Chip Giant

Date: August 18, 2025

Intel Corporation’s stock price surged sharply on Friday after reports revealed that the U.S. government is exploring the possibility of taking a direct stake in the struggling American chipmaker. The news, which comes amid high-level discussions between the White House and Intel’s top executives, triggered a strong rally in the company’s shares and renewed hopes for the revival of domestic semiconductor production.

Intel Shares React Strongly

The report, first published by Bloomberg, stated that President Donald Trump’s administration is weighing options to provide financial backing to Intel through a partial government ownership model. Investors immediately responded with confidence.

Intel’s share price jumped over 7% intraday, settling at $23.86, its highest level in months.
The trading volume also spiked as speculators and long-term investors rushed in, betting that a U.S. stake could be a turning point for the company.

This rally marked one of Intel’s best single-day performances of 2025, highlighting how sensitive the market is to any government-backed rescue for the semiconductor sector.

Why the U.S. is Interested in Intel

Intel is no ordinary tech company. It is the only major U.S.-based chipmaker with large-scale advanced manufacturing capabilities. Over the last decade, it has lost ground to rivals like Taiwan’s TSMC and U.S. competitor AMD.

For Washington, Intel is not just a private company—it is a strategic national asset. The U.S. has been pushing to reduce reliance on Asia for critical chip supplies. The COVID-19 pandemic and geopolitical tensions with China exposed vulnerabilities in the global supply chain. By securing a stake in Intel, the government hopes to:

Ensure domestic control over chipmaking capacity.
Accelerate construction of U.S.-based fabs, especially in Ohio.
Protect national security by reducing dependency on Taiwan and China.
Safeguard jobs and maintain U.S. leadership in innovation.

The Ohio Mega-Factory in Spotlight

One of the biggest factors driving the U.S. interest is Intel’s ambitious Ohio project, which the company once promoted as “the Silicon Heartland.”

The Ohio site was designed to be the world’s largest semiconductor manufacturing campus.
However, the project has faced delays, ballooning costs, and funding shortages.
A government stake could inject the billions of dollars required to keep construction on schedule.

Despite already receiving nearly $8 billion in CHIPS Act subsidies, Intel has struggled to deliver. Analysts say further government involvement may be the only way to rescue the Ohio project and secure U.S. chip independence.

The Trump–Tan Drama

Adding political spice to the story is the tension between President Trump and Intel CEO Lip-Bu Tan.

Just days before the stake report, Trump had criticized Tan, accusing him of having “conflicted ties with China” and even demanding his resignation.
Despite this, Tan has held on to his role and continues to lead Intel’s turnaround strategy.
The news of possible government support suggests that Washington may prioritize strategic goals over personal differences.

This dynamic shows the complex relationship between politics and technology, especially when national security is involved.

Market and Industry Reaction

Wall Street analysts reacted with a mix of optimism and caution.

Optimism: A U.S. stake could boost confidence, strengthen Intel’s balance sheet, and send a clear message that America is serious about leading in chipmaking again.
Caution: Experts warn that financial support alone will not fix Intel’s manufacturing delays, weak product pipeline, and loss of market share.

Competitors like Nvidia and AMD have surged ahead in cutting-edge designs, particularly in artificial intelligence chips. Intel, meanwhile, has faced production setbacks and missed deadlines.

Still, the symbolism of U.S. ownership is powerful. It signals that Washington is willing to go beyond subsidies and take direct control of its most important tech firms.

Broader Government Strategy

The possible Intel deal is part of a larger U.S. industrial strategy. In recent years, the government has:

Secured stakes in rare-earth companies to protect supply chains.
Considered tighter controls and partnerships with Nvidia and AMD.
Expanded incentives under the CHIPS and Science Act to bring manufacturing back home.

With artificial intelligence, defense technology, and advanced computing now dependent on semiconductors, policymakers are keen to ensure that no foreign power can disrupt U.S. access to chips.

What This Means Going Forward

For Intel – A government stake could stabilize finances and provide breathing space. But the company must still fix its execution problems and regain technological leadership.
For Investors – The news may fuel short-term gains, but the long-term turnaround depends on Intel’s ability to compete with TSMC, Samsung, and Nvidia.
For U.S. Policy – This move shows Washington is ready to treat chipmakers like critical infrastructure, much like oil or defense companies.