Trump Defends Intel’s Stake Amid Market Rally
President Donald Trump offered a strong defense of Intel’s 10% stake on Monday, using social media to challenge critics of the trade deal. He pointed out, “I paid Intel zero, which is worth about $11 billion.” This statement came just before Wall Street opened, and he expressed confusion over why “silly” individuals were upset about it. “These kinds of transactions happen all day in our country. They benefit American states and businesses, driving stock prices higher,” he added.
Intel’s stock saw a significant rise of 28% this month, bolstered by the company’s efforts to support struggling chip manufacturers and prioritize American-made semiconductors. Economic adviser Kevin Hassett mentioned that the Trump administration might consider additional similar deals in the future.
The $11 billion stake consists of common stock along with a grant linked to U.S. chips and science legislation passed during the Biden administration. This deal was overseen by former CEO Pat Gelsinger, who, notably, left his position amid company challenges.
Hassett noted, “At some point, we’ll likely see more deals across different industries.” He elaborated that government intervention in the free market, evident with the passing of the Chips Act, was significant. Larry Lindsey, a former director of the National Economic Council, remarked on “Mornings with Maria,” stating, “The shift toward government involvement in the economy was already occurring with how we began allocating capital.” He didn’t believe this indicated an increase in socialism but rather reflected ongoing trends.
Amidst these developments, Intel CEO Lip-Bu Tan remains at the helm despite Trump’s push to reconsider relationships with China. Tan has reiterated Intel’s dedication to production of advanced technology within the United States.
Despite a reported loss of $2.9 billion in the second quarter or $0.67 per share, Intel’s revenues of $12.9 billion have stayed relatively stable compared to last year. This investment signals a strategic effort to help the company recover and strengthen its market position.
