Intel Shares Held by Trump Administration Soar 300%
The value of Intel shares held by the U.S. government has quadrupled to approximately $36 billion, following signs of a sales recovery for the chipmaker. This represents a paper gain of nearly $27 billion since the investment plan was announced in August. The investment was facilitated by CEO Pat Gelsinger's efforts to secure White House support and mend relations with Trump, after Trump had previously called for Gelsinger's removal.
The deal previously announced by the White House saw the U.S. government agree to purchase 433.3 million shares of Intel common stock at a price of $20.47 per share, under certain conditions. The investment was valued at $8.9 billion. The government directly holds over 270 million shares, with some shares held in escrow. The above paper valuation assumes the government exercises its full purchase rights under the agreement.
In addition to the investment in Intel, the Trump administration announced over a dozen other deals to support the development of critical industries such as rare earths, steel manufacturing, and nuclear energy. The Trump administration is also currently considering a rescue plan for Spirit Airlines, which could give the U.S. government an option to hold up to 90% of the airline’s shares after it emerges from bankruptcy proceedings.
“We used to be the chip capital of the world,” Trump told reporters in Washington on Thursday. “Now Intel is coming back, and all the chip companies are coming back.”
Intel shares rose 24% to $82.74 in New York trading at 11:13 a.m., hitting a record high. Earlier, the stock touched $85.22, bringing the value of the U.S. government’s Intel holdings close to $37 billion.