US gov't stake in Intel would be concerning, says market expert

STORY: The Trump administration is in talks to take a 10% stake in Intel by converting some or all of the struggling company's Chips Act grants into equity, Bloomberg News reported, citing a White House official and other people familiar with the matter.

Shares of Intel fell 3.8% on Monday, after rallying last week on hopes of U.S. federal support.

A 10% stake in the American chipmaker would be worth about $10 billion.

Intel has been slated to receive a combined $10.9 billion in Chips Act grants for commercial and military production, and the figure is roughly enough to pay for the government's holding, according to the report.

Intel declined to comment, while the White House did not respond to a request for comment. Reuters could not immediately verify the report.

Geranen said that from a "capitalistic point of view," a potential stake in the chip maker by the U.S. government "is something that we're concerned with."

But, he added that Intel, as well as Nvidia and other companies that have brokered deals with the Trump administration, could be "doing what they need to to play this dance with the new administration, maybe knowing that this isn't going to be a long term." Related Videos

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