Intel shares gained on Tuesday after the White House confirmed the Trump administration is negotiating a deal that could see the U.S. government take a 10% equity stake in the chipmaker, according to the BBC. Commerce Secretary Howard Lutnick said the agreement would involve converting existing federal grants into Intel shares, a move aimed at bolstering domestic semiconductor manufacturing and national security. The deal would support Intel’s planned Ohio hub as it seeks to catch up with Nvidia, Samsung, and TSMC in the fast-growing AI chip market. The unusual arrangement follows SoftBank’s $2 billion investment in Intel, announced Monday, which sent shares up nearly 7%. Analysts warn that partial state ownership could complicate Intel’s operations and deter other firms from pursuing U.S. grants.
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