Chipmaker Intel saw its shares jump by more than seven per cent on Thursday (14.08.25) as speculation mounts that the Trump administration could secure a stake in the company.
Intel shares have soared amid speculation that the Trump administration is in talks to take a stake in the chipmaker.
The firm’s shares jumped by over seven per cent on Thursday (14.08.25) due to the prospective deal that would support Intel’s plans to build a manufacturing hub in Ohio.
The size of the possible stake is not clear and White House spokesman Kush Desai said “discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration”.
It comes just days after a meeting between Intel chief Lip-Bu Tan and US President Donald Trump, who had previously accused the tech boss of being “highly conflicted” due to his alleged ties with China.
Bloomberg reports that Intel’s spokesperson declined to comment on the discussions and said that the company is “deeply committed to supporting President Trump’s efforts to strengthen US technology and manufacturing leadership”.
The potential move would be a “lifeline” for Intel, according to tech analyst David Nicholson from The Futurum Group, as it will offer the company both funding and government support.
The chipmaker has struggled in recent times as it has fallen behind firms such as Nvidia in the artificial intelligence (AI) race.
Intel’s stock market value has more than halved to $104 billion (£77 billion) since 2020.
The deal would signify a deeper “intertwining” of government and private businesses in the US – mirroring a trend seen in nations like China.
It follows chip giants Nvidia and AMD agreeing to pay the US government 15 per cent of Chinese revenues in what is another example of the Trump administration directly intervening in private enterprise.
Nicholson said: “Some folks will think that this is unfair that Intel is being propped up, but most will agree that it is strategically vital for the US.”
Intel’s planned Ohio factory is said to be a key part of the talks with Washington and has been pinpointed as a vital component of the firm’s future.
It is uncommon for the US government to provide direct support for a single company but tech analyst Austin Lyons believes that Intel is a “special case” as it is important for America’s competitiveness in the chipmaking race.
Intel shares soar amid talk of Trump administration stake
