Intel Stock Surges Over 50% in One Month
Shares of U.S. semiconductor giant Intel advanced 3% on Thursday, extending a remarkable rally that has pushed the stock price over 50% higher in the past month. The stock now trades above $37 per share, marking its highest level in 18 months under CEO Lip Bu-Tan’s leadership. This surge has significantly increased the market value of the U.S. government’s 10% ownership stake in Intel to approximately $16 billion, reflecting renewed investor confidence in the company’s turnaround strategy.
U.S. Government’s Strategic Investment
The U.S. government acquired its stake through an $8.9 billion investment in August 2025, purchasing 433.3 million shares at $20.47 each. This investment was negotiated during the Trump administration and is funded by grants awarded to Intel under the U.S. CHIPS and Science Act. To date, Intel has received $2.2 billion from CHIPS Act grants, with an additional $5.7 billion expected. Furthermore, the company is set to receive $3.2 billion from a separate government program, strengthening its financial position amid industry challenges.
“President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security,” said Intel CEO Lip Bu-Tan.
Major Industry Backers and Collaborations
Alongside the government, Intel has attracted significant investments from industry leaders such as Softbank and Nvidia. In September, Nvidia announced a $5 billion investment in Intel as part of a strategic partnership to co-develop data center and PC products. These collaborations have been critical in restoring confidence in Intel after a difficult fiscal year 2024, during which the company’s shares fell 60%, marking its worst annual performance on record and prompting the departure of then-CEO Pat Gelsinger. Intel’s stock also surged 7% on Wednesday following reports that the company is in early discussions with AMD to potentially add the competitor as a hardware customer, signaling further strategic growth opportunities.
FinOracleAI — Market View
Intel’s recent stock rally reflects a broader resurgence in confidence driven by substantial government support and strategic industry partnerships. The U.S. government’s sizeable equity stake, backed by CHIPS Act funding, underscores the strategic importance of domestic semiconductor manufacturing for economic and national security.
- Opportunities: Increased government funding and bipartisan support for chip manufacturing; strategic partnerships with Nvidia and potential collaboration with AMD; potential to regain market share in data centers and PC segments.
- Risks: Competitive pressures from other chipmakers; ongoing global supply chain uncertainties; execution risks in operational turnaround under new leadership.
Impact: Intel’s stock surge and enhanced government stake position the company as a pivotal player in the U.S. semiconductor sector, with positive implications for market confidence and industry stability.
