#intel

#intel

[T]he truce came with a cost: In return for Trump's support, the administration proposed taking an equity stake in the company. It decided to convert nearly $9 billion in grants-promised to Intel as part of the 2022 Chips Act-into a 10% equity stake in the company, an unusual arrangement that makes the government Intel's biggest shareholder. The meeting was the pivot point in a frenzied period for Intel, once one of America's most venerated technology companies, now stuck in a yearslong downward spiral.

Donald Trump has a message for critics who think turning the U.S. government into a major stockholder of Intel is a "socialist" move: More is coming. "I will make deals like that for our Country all day long," the president posted on Truth Social after critics piled on, adding later about future ownership stakes, "I want to try and get as much as I can."

Politicians can end up with strange bedfellows in this chaotic age, but certain economic tenets are virtually incontrovertible: calls to nationalize industry typically come from the left, while the right steadfastly opposes those efforts in favor of market-based solutions. And yet, for some reason, the ever-chaotic president Donald Trump has directed the US government to acquire a 10 percent stake in the troubled chipmaker Intel - a bizarre and impractical move that's being decried across the ideological spectrum.

Shares of the struggling chipmaker have rallied 28% this month, adding about $24 billion in market value, on reports that the US government is in talks for a potential equity stake, as well as plans for a $2 billion investment from Japan's SoftBank Group Corp. The jump has Intel trading at 53 times profits projected over the next 12 months, the highest since early 2002, according to data compiled by Bloomberg.

By the time Intel was celebrating its 10th anniversary in 1978 - a huge party at Daly City's Cow Palace, complete with disco music and a stock gift to every employee - the company had already racked up a list of industry-defining accomplishments.

Intel is gaining momentum following a Bloomberg report that the Trump Administration is in talks to have the U.S. take a stake in the stock. Such a move would mark another intervention by U.S. President Donald Trump in industries seen as vital to national security. Intel declined to comment on the report but said it was deeply committed to supporting Trump's efforts to strengthen U.S. technology and manufacturing leadership.

The former directors demanded the ouster of CEO Lip-Bu Tan and called for a radical restructuring that would spin off Intel's manufacturing arm into an independent company.