Intel shares surged over 7% on Thursday, with an additional 4.5% gain in after-hours trading, following reports of potential discussions between the US government and the chipmaker regarding a state investment. The unexpected rally lifted the stock to $23.86, offering relief to investors after months of struggles. Sources indicate the Trump administration is considering a stake in Intel to accelerate construction of a delayed mega-chip factory in Ohio—a project once touted as the world’s largest semiconductor facility.
From Conflict to Rescue Talks
Just days after publicly demanding the resignation of Intel’s CEO over alleged ties to Chinese military-linked firms, the administration reportedly held talks with the company’s leadership this week. Analysts suggest the move aligns with broader efforts to bolster domestic chip production, possibly including tariffs to incentivize clients like Apple and Nvidia to use Intel’s foundry services. While neither side confirmed details, the market reaction reflects optimism that state backing could reverse Intel’s declining fortunes amid fierce competition and costly missteps in recent years.
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