Intel’s stock surged by 10% on Friday, extending a remarkable rally that has seen its value more than double since the U.S. government acquired a significant stake in the semiconductor giant back in August. This latest boost followed a productive meeting between Intel CEO Lip-Bu Tan and President Donald Trump, signaling a strengthening partnership between the tech firm and the administration.
Trump, in a social media post Thursday, expressed pride in the government’s position as a shareholder in Intel. He lauded Tan’s leadership and highlighted the recent launch of Intel’s new chip, emphasizing that it was “designed, built, and packaged right here in the U.S.A.” This focus on domestic manufacturing aligns with broader governmental initiatives aimed at bolstering the U.S. semiconductor industry and reducing reliance on foreign production.
Tan, in a statement on X, conveyed his honor and delight at receiving the “full support and encouragement” from President Trump and Secretary of Commerce Howard Lutnick. He also pointed to the commencement of shipments for Intel’s latest Core Ultra Series 3 CPU processors, a key product built on the company’s advanced Intel 18A process technology. This marks a significant milestone for Intel as it strives to regain technological leadership in a fiercely competitive market.
The U.S. government’s investment, finalized in August, involved the acquisition of 433.3 million shares at $20.47 per share, totaling $8.9 billion. This stake is now valued at approximately $19 billion, underscoring the substantial return on investment and the positive trajectory of Intel’s stock, which has climbed nearly 20% year-to-date.
This seemingly harmonious alliance contrasts with a more contentious period prior to the government’s investment. In the weeks leading up to the stake announcement, President Trump publicly questioned Tan’s leadership, calling for his resignation due to concerns raised by Senator Tom Cotton regarding Tan’s ties to Chinese companies and potential national security implications. Senator Cotton, in a press release, stated that Intel’s role as a steward of taxpayer dollars and its adherence to security regulations were paramount, and that Tan’s associations raised questions about Intel’s ability to meet these obligations.
Intel, in response to these concerns, issued a statement affirming its deep commitment to advancing U.S. national and economic security interests, a sentiment echoed by its board of directors and CEO. Tan himself addressed employees in a memo, emphasizing his adherence to the highest legal and ethical standards throughout his career and his commitment to working with the administration to resolve any concerns.
Tan assumed the role of CEO in March 2025, taking the helm during a period of declining sales and internal instability. His tenure has been marked by a strategic push to revitalize Intel’s manufacturing capabilities and product innovation, a critical endeavor as the company navigates the complex geopolitical landscape and the relentless pace of technological advancement in the semiconductor industry. The successful integration of the Intel 18A process and the strong reception of its new chip offerings are key indicators of Intel’s efforts to reassert its dominance in chip manufacturing.
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