The BareStory
Semiconductor stocks rallied on Friday, with Intel shares recording significant gains after U.S. President Donald Trump praised the company and its CEO, Lip-Bu Tan, following a meeting between the two leaders. Market data showed that stocks for other industry firms, including Broadcom, Micron, and AMD, also rose after the President expressed support for the chip manufacturer on social media.
In a post on the Truth Social platform, President Trump described the meeting with Tan as "great" and called the CEO "very successful." He emphasized that the U.S. government is a "proud" shareholder of Intel and asserted that the nation is determined to return leading-edge chip manufacturing to American soil. Following the meeting, Tan stated on the X platform that he was honored to have the "full support and encouragement" of the President and U.S. Secretary of Commerce Howard Lutnick. Tan also announced that the company is now shipping its new Core Ultra Series 3 CPU processors, the first major product built on the Intel 18A process.
The U.S. government became Intel's majority shareholder in August through an $8.9 billion investment under the CHIPS and Science Act, acquiring a stake reportedly exceeding 10%. Since the acquisition, the value of the government's holdings has roughly doubled to approximately $19 billion. In his social media comments, Trump claimed this ownership position had already generated "Tens of Billions of Dollars for the American People."
The recent meeting signals a shift in the relationship between the administration and Intel’s leadership. Prior to the government's investment, Trump had called for Tan's resignation, referencing concerns raised by Senator Tom Cotton regarding the CEO's connections to Chinese companies and potential national security risks. In response to those allegations, Intel affirmed its commitment to U.S. security interests, and Tan maintained that he has always operated with high legal and ethical standards.
How it may affect me
As a U.S. reader:
The value of the government's stake in Intel has roughly doubled to $19 billion, representing a significant financial return on the taxpayer-funded investment made under the CHIPS and Science Act.
Your retirement or investment accounts may benefit from the rally in semiconductor stocks, as shares for Intel, Broadcom, Micron, and AMD rose following the meeting between leaders.
You may soon see new consumer electronics on the market as Intel ships its Core Ultra Series 3 processors, a step toward the national goal of domestic chip manufacturing.
Public oversight of technology security may stabilize as the administration shifts from demanding the CEO's resignation over alleged foreign ties to offering full government support and encouragement.
