Intel in focus as Trump administration may unveil equity stake details soon: report

[Intel headquarters in Santa Clara, California, USA]
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Intel (NASDAQ:INTC [https://seekingalpha.com/symbol/INTC]) was in focus on Friday as Bloomberg reported the Trump Administration could unveil the details on its equity stake in the beleaguered chipmaker soon.

Details of the announcement could happen as soon as Friday, the news outlet added, citing people familiar with the plan.

Intel shares rose nearly 5% in midday trading.

President Trump said on Friday that Intel had “agreed to do it and I think it’s a great deal for them.” He added that “Intel has been left behind” in terms of its competitors.

Despite the president's comments, details on the deal are still being worked out.

Earlier this month, reports emerged [https://seekingalpha.com/news/4486650-trump-administration-considers-taking-10-percent-stake-in-intel-as-plan-develops-report] that the U.S. government was discussing taking a 10% stake in the company. Taking a 10% stake in Intel would require about $10.5B and make the U.S. government the largest shareholder. The Administration is considering using funds from the U.S. CHIPS and Science Act to pay for the investment.

Commerce Secretary Howard Lutnick confirmed this week the Administration was in discussions over using CHIPS funding to invest in Intel. If the U.S. purchased the 10% stake, it would become the company's largest shareholder.

Treasury Secretary Scott Bessent also said [https://seekingalpha.com/news/4486934-bessent-says-us-stake-in-intel-crucial-for-security-nvidia-needs-license-to-export-b30a-to-china] the plan to acquire a stake in Intel to help it develop a functioning foundry domestically is crucial for national security.

The Lip Bu Tan-led Intel recently scored a win when Japan's SoftBank (OTCPK:SFTBY [https://seekingalpha.com/symbol/SFTBY]) said [https://seekingalpha.com/news/4486774-intel-scores-2b-investment-from-japans-softbank-shares-jump-after-hours] it would invest $2B in the company at $23 per share. The company is also reportedly [https://seekingalpha.com/news/4487484-intel-discusses-equity-boost-at-discount-with-other-large-investors] talking to other large investors about taking a stake.

_(This story has been updated to include comments from President Trump.)_

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