Intel shares rise on report of possible US government stake: White House denies the claims

In a week marked by political intrigue and dramatic market swings, Intel shares surged following a report that the U.S. government was considering taking a stake in the struggling chipmaker. However, the gains were tempered by a swift and firm denial from the White House, adding a new layer of uncertainty to a story that combines national security with corporate finance and a high-stakes power play.

Rumors swirl

The story began with a report from Bloomberg, citing sources familiar with the discussions, that the Trump administration was in talks to acquire a stake in Intel.

The potential deal, reportedly stemming from a meeting between President Donald Trump and Intel CEO Lip-Bu Tan, was framed as a way to provide crucial funding for Intel’s ambitious and long-delayed manufacturing hub in Ohio and to bolster U.S. domestic chip production.

This reported discussion came just days after a highly publicized and unusual conflict. President Trump had previously called for Tan's resignation, citing alleged ties to Chinese military-linked companies.

The market reacts, the white house denies

The news of a possible government stake was met with an immediate and positive reaction from investors. Intel's stock (INTC) jumped over 7% on Thursday and continued to climb in premarket trading on Friday, extending a rally that began earlier in the week.

Analysts viewed the potential investment as a "lifeline" for the company, which has been struggling to keep pace with rivals like Nvidia in the booming AI chip market and has faced significant losses and manufacturing delays.

However, this market enthusiasm hit a snag when White House spokesman Kush Desai released a statement to the press, directly denying the report. "Discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration," he said, effectively pouring cold water on the rumors.

While the White House's statement did not fully halt the stock's gains, it introduced a significant element of risk for investors who had piled into the stock based on the report.

Looking forward

This story is not an isolated incident. It is the latest example of a growing trend of direct government intervention in the semiconductor industry, which is viewed as a vital national security interest. The Trump administration has already pursued other unprecedented measures, including a deal that forces Nvidia and AMD to pay a percentage of their China revenues to the U.S. government, and the Department of Defense taking a stake in a rare-earth producer.

Meanwhile, the government’s stake in Intel remains a rumor.