Intel Shares Surge as Trump Considers Government Investment to Save U.S. Chip Production

Intel’s stock soared 8% on Thursday and continued to rise after hours. The reason? Market sources report that President Donald Trump’s administration is considering purchasing a stake in the company – a move that could mark a turning point for the only American manufacturer capable of producing the most advanced processors domestically.

Government Funds to Boost U.S. Manufacturing The plan aims to channel federal funds into Intel’s new factories in Ohio, which are already facing delays and reduced investment. This initiative would help keep high-end semiconductor manufacturing on U.S. soil and reduce reliance on foreign suppliers, especially TSMC and Samsung, whose U.S. plants are owned by overseas companies. Trump has long pushed for critical chip production to remain in the United States. At this moment, Intel is the only player with the capacity to produce the most advanced processors entirely within the country.

From Criticism to the Negotiation Table Just days before the investment discussions emerged, Trump publicly criticized Intel CEO Lip-Bu Tan and called for his resignation over alleged conflicts of interest. Yet on Monday, the two met at the White House to discuss a potential government stake in the company. While the deal is far from certain, the fact that talks are taking place—especially after such public attacks—has captured market attention. Intel stated it will continue working with the administration on shared priorities but declined to comment on speculation.

Intel in Crisis The company is facing deep challenges this year. In Q2, it reported a $2.9 billion loss, and its attempts to break into the AI chip market have so far failed. Its new foundry business model, producing chips for other companies, has not attracted major clients, and plans for factories in Germany and Poland have been scrapped. The canceled projects and scaled-back Ohio investments could become central to the government’s decision. A federal stake might keep the factory alive for now, but investors know Intel needs more than just a cash injection—it needs winning products and a strategic turnaround.

Trump’s Grip on the Tech Sector In recent months, the Trump administration has shown it’s willing to intervene directly in private industry—from restricting Nvidia and AMD’s chip exports to China, to investing in rare earth mining, to taking a “golden share” in U.S. Steel. For Trump, Intel represents a symbol of U.S. technological independence. For Wall Street, it’s a test of whether the company can halt its decline and regain lost investor confidence.

#Intel , #TRUMP , #worldnews , #stockmarket , #WallStreet

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“