Signage outside the Intel headquarters in San Jose, California, US, on Thursday, Sept. 18, 2025.
David Paul Morris | Bloomberg | Getty Images
Shares of Intel (INTC) surged 3% on Thursday, propelling the stock’s monthly gains beyond 50%. This dramatic climb signifies a potential turning point for the semiconductor giant, which has faced considerable headwinds in recent years.
The stock’s ascent past $37 significantly elevates the value of the U.S. government’s 10% stake in Intel, now estimated at approximately $16 billion. This equity position, acquired in August through an $8.9 billion investment negotiated by the Trump administration (purchasing 433.3 million shares at $20.47 each), is being funded by grants awarded under the Biden administration’s U.S. CHIPS and Science Act.
The infusion of capital from the CHIPS Act, with $2.2 billion already received and an additional $5.7 billion earmarked, underscores the government’s commitment to bolstering domestic chip manufacturing. A further $3.2 billion from a separate government program is also expected to be awarded.
“President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security,” stated CEO Lip Bu-Tan in a press release, highlighting how government support is viewed as a key catalyst for Intel’s revitalization.
Beyond government backing, Intel has attracted significant investment from private sector players. Softbank previously invested in the company, and more recently, Nvidia has stepped in. The graphics processing unit (GPU) leader announced a $5 billion investment in September, framed as a collaborative effort to co-develop advanced data center and PC solutions. This partnership signals a significant vote of confidence in Intel’s future and leverages the strengths of both companies.
These strategic investments have been instrumental in Intel’s rebound, particularly after a challenging fiscal year 2024. The company’s shares plummeted by 60%, marking its worst year on record, culminating in the departure of then-CEO Pat Gelsinger in December. This period of turmoil raised serious questions about Intel’s ability to compete in an increasingly demanding semiconductor landscape.
However, under Bu-Tan’s leadership, a sense of stability and optimism has returned. The current share price, trading at its highest level in 18 months, suggests that investors are regaining confidence in Intel’s strategic direction and execution capabilities. The collaboration with Nvidia, in particular, is viewed as a strategic masterstroke, potentially unlocking new avenues for growth and innovation.
Adding to the positive momentum, Intel shares jumped 7% on Wednesday following reports of ongoing discussions with arch-rival AMD to potentially supply hardware. While still in the early stages, this potential partnership demonstrates Intel’s evolving strategy and willingness to explore collaborations even with competitors.
Analysts suggest that Intel’s resurgence is not solely attributable to financial injections. The company’s renewed focus on innovation, coupled with a streamlined operational structure, is playing a crucial role. Furthermore, Intel’s foray into advanced packaging technologies and its efforts to secure a foothold in the burgeoning AI chip market are seen as long-term strategic plays that could yield significant returns.
However, challenges remain. Intel faces intense competition from AMD, Nvidia, and other global chipmakers. The successful execution of its strategic roadmap and its ability to adapt to rapidly evolving technological trends will be critical in determining the long-term sustainability of its recovery.

Intel year-to-date stock chart.
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