Intel stock rises after Trump touts 'very successful' CEO, applauds government's investment

Shares of Intel experienced a 2% increase in after-hours trading on Thursday, following President Donald Trump's enthusiastic endorsement of the chip manufacturer and its CEO, Lip-Bu Tan. In a social media post on Truth Social, Trump expressed his satisfaction with a recent meeting, highlighting Tan's success and the government's financial support for Intel. In August, the U.S. government acquired a 10% stake in Intel through an $8.9 billion investment, which was funded by unallocated CHIP Act grants and government incentives aimed at boosting domestic semiconductor production. Trump stated, "The United States Government is proud to be a Shareholder of Intel, and has already made, through its U.S.A. ownership position, tens of billions of dollars for the American People — IN JUST FOUR MONTHS." He emphasized the significance of the deal, claiming, "We made a GREAT Deal, and so did Intel. Our Country is determined to bring leading edge Chip Manufacturing back to America, and that is exactly what is happening!!!" Since the announcement of the investment under the Trump administration, Intel's stock has surged by 75%, elevating the government's stake to over $18 billion, making it Intel's largest shareholder. Tan took over as CEO in March, succeeding Pat Gelsinger, amid Intel's struggle to maintain market share against competitors like AMD and Nvidia, as well as manufacturers utilizing energy-efficient Arm chip designs. Despite these challenges, Intel continues to play a crucial role as a supplier of processors for personal computers and server systems. However, tensions arose earlier in the summer when Trump suggested that Tan should resign, citing concerns over the CEO's connections to China, especially after reports revealed that Tan had investments in more than 600 Chinese tech companies. As Intel navigates these complex dynamics, the company has also undertaken significant layoffs, with Tan scaling back chip production in Europe. This story is ongoing, and further updates are expected.