Prime Highlight:
- Intel’s stock has surged more than 50% in the past month, reaching its highest level in 18 months.
- The U.S. government’s 10% stake in Intel is now worth about $16 billion.
Key Facts:
- The Trump administration invested $8.9 billion in Intel in August, buying 433.3 million shares at $20.47 each.
- Intel has already received $2.2 billion in CHIPS Act grants and is set to get an additional $5.7 billion, with more funding expected.
Key Background:
U.S. chipmaker Intel has seen a remarkable rebound in its stock performance, with shares climbing more than 50% over the past month. On Thursday, Intel’s shares rose 3%, pushing the stock above $37 and marking the highest level in 18 months under CEO Lip Bu-Tan’s leadership.
This surge has significantly increased the value of the U.S. government’s 10% stake in Intel, bringing it to roughly $16 billion. The equity stake was part of an $8.9 billion investment in August, when the Trump administration purchased 433.3 million shares at $20.47 each. This stake is funded by grants from the U.S. CHIPS and Science Act. Intel has received $2.2 billion so far and is expected to get another $5.7 billion. An additional $3.2 billion from a separate government program is also planned.
Intel’s stock recovery comes after a challenging fiscal 2024, which saw shares drop 60%, the company’s worst performance in over a decade. The time also came with the exit of the previous CEO, Pat Gelsinger, in December.
Besides government backing, other significant investors have invested money in Intel, such as Softbank and Nvidia. Intel is also reportedly in early discussions with AMD to bring the hardware-maker on board as a customer, a move that helped the stock jump 7% on Wednesday.
Intel CEO Lip Bu-Tan said that President Trump’s push for U.S. chip production is bringing record investments into an industry that is crucial for the nation’s economy and security.
Intel is recovering its lost issues through government support, partnerships, and increasing confidence in the market. Analysts indicate that Intel can be even stronger in the world chip market through new investments and cooperation with other technological firms.
The latest Intel performance shows that it is strong, and the confidence of its investors is increasing, which predetermines its dominance in the chip industry in the United States.
Read Also : Hive Partners with myenergi to Bring Full EV Charger Control to Hive Home App
