Intel shares increased by more than 7% following reports of the Trump administration negotiating a stake in the chipmaker. This deal would support Intel’s initiative to establish a manufacturing hub in Ohio. White House officials emphasize that discussions about hypothetical deals should be seen as speculation. Intel has faced challenges, experiencing a significant decline in market value since 2020. The potential government stake could provide Intel much-needed funding and signal a closer relationship between government and private business in the U.S.
Shares in Intel jumped by more than 7% on Thursday, following reports that the Trump administration is in talks to take a stake in the chipmaker.
The reported move would be a "lifeline" for Intel, offering the company funding and government support, said tech analyst David Nicholson from The Futurum Group.
Intel's stock market value has more than halved to $104 billion since 2020, as the storied chipmaker has struggled in recent years after falling behind in the AI race.
This week, chip giants Nvidia and AMD agreed to pay the US government 15% of Chinese revenues, showcasing the Trump administration's direct intervention in private enterprise.
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