Intel stock jumped Friday after President Donald Trump said the company has agreed to give the U.S. government a 10% stake in the chipmaker, according to a media report.
Intel (INTC) shares rose more than 6% in afternoon trades. The deal is expected to be announced Friday, Bloomberg reported, citing unnamed sources.
“They’ve agreed to do it and I think it’s a great deal for them,” Trump told reporters Friday at the White House, according to the report.
The report marks another twist in what’s been a tumultuous period for Intel. Once the most dominant chipmaker in the world, the Silicon Valley giant has fallen behind rivals led by Nvidia (NVDA) and Advanced Micro Devices (AMD), especially in AI.
Then there’s Trump whose recent pronouncements have rattled investors.
Two weeks ago, he said Intel Chief Executive Lip-Bu Tan must resign, accusing him of being conflicted. The news sent Intel stock tumbling.
Last week, Intel shares rallied on news that Trump wanted to take a stake in the company. The Trump Administration reportedly is interested in converting some or all of the grants Intel received through the U.S. Chips and Science Act into equity.
Intel stock also rose after the company announced a $2 billion investment by SoftBank.
Intel stock has been advancing on the news developments and speculation. But the stock’s rating has remained low, with a Relative Strength rating of 62, according to IBD MarketSurge.
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