Intel Stock Keeps Getting a Boost From US Investment

Intel (INTC) shares added to their Friday gains in premarket trading following word the U.S. had taken about a 10% stake in the struggling chipmaker.

President Donald Trump posted on his social media site, Truth Social, on Friday that he negotiated the investment with CEO Lip-Bu Tan, and that it was a “great Deal for America, and, also, a great Deal for INTEL.”

Trump noted the U.S. paid nothing for the shares, which he valued at $11 billion. He added that the move was part of his administration’s effort to increase domestic semiconductor manufacturing.

The president’s post came shortly after Secretary of Commerce Howard Lutnik also announced the acquisition, calling it a “historic agreement [that] strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge.”

Intel said the U.S. will acquire 433.3 million primary shares of Intel common stock at for  $20.47 each, which was equivalent to a 9.9 percent stake in the company.

It explained that the money would come from “the remaining $5.7 billion in grants previously awarded, but not yet paid, to Intel under the U.S. CHIPS and Science Act and $3.2 billion awarded to the company as part of the Secure Enclave program.”

Tan said Intel was “grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership.”

The news lifted shares of Intel 5.5% on Friday to close at $24.80, putting them up almost 24% for the year. They were up a further 2% less than an hour before the opening bell Monday.