Intel stock rises after Trump touts CEO, government investment
Intel Shares rose 2% in extended trading Thursday after President Donald Trump posted a flattering message about the chip maker and its CEO on social media and backed the government’s investment in the company.
“I just finished a great meeting with the very successful Intel CEO Lip-Bu Tan,” Trump wrote on Truth Social.
In August, the US government purchased a 10% stake in Intel with an investment of $8.9 billion. This came from outstanding CHIPS Act grants and government awards for semiconductor manufacturing.
“The United States Government is a proud Shareholder of Intel and, through its ownership position in the United States, has brought Tens of Billions of Dollars to the American People IN JUST FOUR MONTHS,” Trump wrote. “We got a GREAT deal, and so did Intel. Our country is committed to bringing high-end chip manufacturing back to America, and that’s exactly what’s happening!!!”
Intel shares have risen 75% since the investment announced by the Trump administration, pushing the government’s stake to more than $18 billion. The US is now Intel’s largest shareholder.
Intel CEO Lip-Bu Tan holds a slab of CPU tiles for the Intel Core Ultra series 3, codenamed Panther Lake, outside the Intel Ocotillo campus in Chandler, Arizona. Panther Lake is the first client system-on-chip (SoCs) built on the Intel 18A compute node.
Courtesy: Intel
Tan replaced Pat Gelsinger as Intel’s CEO in March after the company lost market share. Advanced Micro Devices And Nvidiaand chip manufacturers based on energy-efficient Arm designs. But Intel remains a major supplier of processors for PCs and computer servers.
In July, the chip maker announced it would lay off thousands of employees, and Tan moved to pull back chip production in the US and Europe. A facility in Ohio is scheduled to come online in 2030 or 2031.
The next month, Trump called on Tan to resign, saying the CEO was “at odds.” His remarks came after U.S. Sen. Tom Cotton, R-Ark., questioned Tan’s ties to China. Tan, who was born in Malaysia and raised in Singapore, has invested in more than 600 Chinese technology companies, Reuters reported in April.
Days later, Trump changed his mind and praised Tan’s “amazing story” after meeting with the Intel CEO. The investment came later that month.
At the CES trade show in Las Vegas earlier this week, Intel announced its availability 2 nanometer 18A PC chips. Intel says the process is the most advanced ever produced in the US
“Intel introduces the first SUB 2 NANOMETER CPU PROCESSOR designed, manufactured and packaged in the USA,” Trump said in his post on Thursday.
Intel has devoted tens of billions of dollars to building a domestic chip manufacturing business, but like AMD and Nvidia, it is relying on: Taiwan Semiconductor Manufacturing Company.
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