Trump Administration Eyes Equity Stakes in Top Defense Contractors After Intel Deal

The Trump administration is looking into taking stakes in top defense contractors, according to Commerce Secretary Howard Lutnick, after its deal for a 10% stake in Intel (INTC). 

“There’s a monstrous discussion about defense,” the Cabinet secretary told CNBC in a televised interview Tuesday, suggesting a number of defense companies that count the U.S. government as a major client could be potential targets. 

“If we are adding fundamental value to your business, I think it’s fair for Donald Trump to think about the American people,” Lutnick added.

Lutnick pointed to Lockheed Martin (LMT), which made nearly three-quarters of its sales from deals with the U.S. government in 2024—including 65% from the Department of Defense, as a prime example. The company is “basically an arm of the U.S. government,” he said.

A Lockheed Martin spokesperson told Investopedia, “As we did in his first term, we are continuing our strong working relationship with President Trump and his Administration to strengthen our national defense.”

Trump Said He Plans to Make More Equity Deals Like Intel One Last Week

Lutnick’s comments come after President Trump said yesterday that he plans to make more equity deals like the one he announced last week with embattled chipmaker Intel, which is being funded by awards under the CHIPS Act, though some Wall Street analysts have suggested similar agreements may not hold as much appeal for companies on stronger footing.

The Trump administration’s stated interest in expanding its ownership and influence in private businesses also marks a noteworthy shift in the approach of the federal government, which has typically reserved such moves for times of extreme stress, drawing some criticism from members of his own party concerned about state overreach.

Shares of Lockheed Martin were up about 1% in recent trading. They’ve lost roughly 7% of their value since the start of the year, after taking a hit last month on the heels of a weakened outlook and reported losses connected to multiple programs. 

Other defense stocks, including Northrop Grumman (NOC) and L3Harris (LHX), were little changed to slightly higher late Monday morning. (Read Investopedia‘s full coverage of today’s trading here.)