Intel stock jumped Friday on news that the Trump administration could be taking a stake.
Trump recently criticized Intel CEO Lip-Bu Tan over ties to China.
The move: Intel stock surged on Friday, jumping as much as 5% to add to the gains logged in Thursday’s session.
Intel stock has been volatile this year, with the ailing chip maker lagging competitors like AMD and Nvidia, though the shares are still up 23% year-to-date.
Why: The fresh momentum follows a report that the US government could take a stake in the company.
Bloomberg reported that plans came about after a meeting between President Donald Trump and Intel CEO Lip-Bu Tan. Details are still being assessed but sources said that the US government plans on paying for a stake in the company.
The report follows news this month that the administration had struck deals with Nvidia and AMD that would see those firms pay 15% of their China chip revenues to the US government.
Other examples of the government getting involved in private businesses include the US Department of Defense’s plans to take an equity stake in MP Materials, a rare earth mining company.
No details of the White House’s deal with Intel have been formally announced.
What it means: On August 7, Trump posted to Truth Social that Tan was “highly conflicted” and needed to resign immediately. Tan responded a few days later, defending his integrity and reaffirming that he remains committed to the company.
A week later, Trump appears to have changed his stance on Tan and seems open to working with him. If the White House does acquire a stake in Intel, it could allow the company to expand its chip manufacturing in the US, helping it stay competitive in the key corner of the tech space.
Once a pillar of the tech sector, Intel stock has shed almost half its value over the past five years, even as the artificial intelligence boom has sent demand for semiconductors soaring.
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