Intel (INTC) shares surged Friday, as President Trump said the U.S. government struck a deal giving it a 10% stake in the struggling chipmaker.
“This is a great Deal for America and, also, a great Deal for INTEL,” Trump posted on his Truth Social network Friday.
“Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation,” Trump added.
The passive ownership stake, which is worth approximately $11.1 billion, is being funded by a combination of paid and not yet paid CHIPS Act awards, Intel said in a statement.
“President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security. We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership,” Intel CEO Lip-Bu Tan said.
Intel shares surged over 5% during Friday’s session amid anticipation of a deal after Bloomberg reported an announcement would be coming soon, and as the broader market rallied on expectations of an interest rate cut in September. The stock climbed another 1% in extended trading.
With Friday’s gains, shares of Intel have added nearly one-quarter of their value in 2025.
This article has been updated since it was first published to reflect more recent developments and share price values.