"The US government owns approximately 433 million shares of Intel, acquired last August for $8.9 billion at $20.47 per share. After Intel's stock surged more than 20% on Wednesday following a first-quarter earnings beat that nobody on Wall Street had modelled, that stake is worth roughly $36 billion."
"The unrealised gain is $26.5 billion, a 300% return in eight months. It is, by any measure, one of the most profitable government investments in American industrial history. It is also one that almost nobody in Washington intended to make."
"Rather than disburse the remaining grants, the administration converted $5.7 billion in unpaid CHIPS Act funds and $3.2 billion from the Secure Enclave defence programme into a direct equity stake."
The US government holds a 9.9% stake in Intel, acquired for $8.9 billion, now valued at approximately $36 billion after a significant stock surge. This $26.5 billion unrealized gain represents a 300% return in eight months, marking it as one of the most profitable government investments in history. The stake was acquired through the conversion of CHIPS Act grants and Secure Enclave funds, a decision made due to political opposition to the program's conditions rather than a strategic industrial plan. No exit strategy has been established.
Read at TNW | Insights
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