A national success story: US government’s Intel investment more than doubles in value

$8.9 billion stake skyrockets to $18 billion in four months as chipmaker's turnaround accelerates.

The United States government’s strategic equity stake in Intel Corporation has dramatically doubled in value in the four months since the initial investment, according to statements from the White House. The $8.9 billion investment, executed in August 2025, is now estimated to be worth approximately $18 billion, representing a massive return for American taxpayers and a clear signal that Intel’s ambitious turnaround is gaining momentum.

The investment, which gave the U.S. government a 9.9% stake and made it Intel’s largest single shareholder, was funded by converting remaining grants under the CHIPS and Science Act and other government programs, reflecting a highly unusual move to secure both national security interests and a financial stake in American technology leadership.

The $20.47 to $45 rally

The federal government acquired 433.3 million primary shares of Intel common stock at a purchase price of $20.47 per share. Recent stock market activity has pushed Intel's price to approximately $45 per share, more than doubling the initial investment and validating the government’s aggressive approach to bolstering the domestic semiconductor supply chain.

President Donald Trump highlighted the success of the investment, stating, "The United States Government is proud to be a Shareholder of Intel, and has already made... Tens of Billions of Dollars for the American People—IN JUST FOUR MONTHS."

The stock’s surge reflects growing investor confidence in Intel’s execution of its Intel 18A process node roadmap and its success in stabilizing key financial indicators. The company has shown tangible progress in increasing its gross margin and reducing operating expenses throughout 2025.

The government investment, which provided a substantial cash infusion, was quickly followed by a $5 billion investment from Nvidia in September 2025, further signaling Wall Street's renewed optimism in Intel's long-term viability as a foundry and AI player.

Future outlook and strategy

Intel’s success is being driven by strong demand for AI-capable PCs and data center products, which analysts project will continue throughout 2026. The government’s stake, though passive and non-voting, is seen as a powerful, permanent signal of strategic support for the chipmaker.

The terms of the August 2025 agreement also included a five-year warrant for an additional five percent of Intel shares, exercisable if Intel ceases to own at least 51% of its foundry business—a clause designed to protect the national interest in domestic chip manufacturing for the long term.