Intel Shares Rocket 7% As Trump Reportedly Mulls Stake In Tech Giant

Topline

Intel’s stock surged in the final hour of trading Thursday, after a Bloomberg report said the Trump administration is considering a stake in the tech giant just days after Trump met with chief executive Lip-Bu Tan, after previously calling for his ouster.

Intel shares closed up over 7% Thursday. (Photo via Smith Collection/Gado/Getty Images).

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Key Facts

Intel shares closed up 7.4% Thursday, reaching their highest point since March and erasing a slide in shares that materialized last month after its latest earnings report fell short of Wall Street expectations.

The Trump administration is in talks with Intel about buying equity in the company as a way to strengthen its manufacturing presence in the U.S., Bloomberg reported, noting the deal would support one of Intel’s upcoming manufacturing plant in Ohio.

The size of the potential stake is unknown, according to Bloomberg.

Following repeated delays, Intel is slated to construct two facilities in Ohio worth $28 billion by 2030.

White House Spokesman Kush Desai told Forbes in an email, “Discussion about hypothetical deals should be regarded as speculation unless officially announced by the Administration.”

Forbes has reached out to Intel for comment.

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How Has Intel’s Stock Performed This Year?

Well, for the most part—tapping the brakes on a downturn that lasted years as it failed to keep up with its competitors in the AI race. Intel’s stock is up 19% since the start of the year following Thursday’s spike, though the company has not been without its slumps. Shares reached their lowest point of the year in April and fell to the $18.13 mark around the same time a Reuters report found Tan had extensive business ties to China. Shares climbed in the proceeding months before tanking again in late July. However, the spike in Intel’s stock over the past week has more than made up for July’s losses, bringing the stock to $23.86 per share.

Why Are Intel’s Ohio Facilities So Important?

The factories will be focused on domestic semiconductor development, something the Biden and Trump administrations have pushed for as countries like Taiwan, China and South Korea maintain an edge in chip production. Semiconductors are small chips crucial for computers, smartphones, medical devices, cars and other technologies. Intel has invested $28 billion into the facilities that will be located on a nearly 1,000-acre plot outside of Columbus, Ohio. Delays have pushed the opening date from 2025 to 2030 as Intel has dealt with financial struggles.

Key Background

Tan’s connection to over 600 Chinese firms landed him in hot water with the Trump administration this month, with Sen. Tom Cotton, R-Ark. questioning Intel’s “potential impact on U.S. national security” and Trump calling for the CEO’s resignation. Intel, which brought on Tan as its new chief executive in March, said in a letter its board and Tan were committed to U.S. national and economic security interests and were “making significant investments aligned with” Trump’s agenda. Trump met with Tan early this week in what he called a “very interesting” meeting. The president lauded Tan’s “success and rise,” adding his Cabinet would soon discuss business suggestions with the CEO within the next week.

Topline

Key Facts

How Has Intel’s Stock Performed This Year?

Why Are Intel’s Ohio Facilities So Important?

Key Background

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