Intel (NASDAQ:INTC) shares fell 5% after Bloomberg reported that the Trump administration is considering acquiring a roughly 10% stake in the chipmaker.
According to the report, the federal government is considering converting some or all of the $10.9 billion in Chips and Science Act grants into capital. At Intel’s current market valuation, a 10% stake would be worth approximately $10.5 billion. The exact size of the potential stake and whether the administration will proceed with the plan remain undetermined, according to people familiar with the matter who requested anonymity.
The White House has not confirmed specific details.
The report also suggested that the administration could consider converting other Chip Act grants into equity stakes, though it’s unclear whether this approach has gained widespread support within the government or whether officials have discussed it with other potential companies.
News of the potential government investment initially sparked a rally in Intel stock last week, with a 23% increase in its best weekly gain since February. However, investors appeared to reevaluate the implications on Monday, sending the stock lower.
Source: Investing.com
