CoinDesk
Intel shares jumped more than 22% in pre-market trading on Friday after the chipmaker posted a decisive first-quarter earnings beat, with the rally pushing the U.S. government's 9.9% stake to an unrealized gain of approximately $26.5 billion. The administration converted $8.9 billion in CHIPS Act grants and Secure Enclave funding into 433.3 million Intel shares at $20.47 apiece in August, and that position is now valued near $35.4 billion with INTC trading around $81.80. The government also holds warrants for an additional 5% at $20 per share, options that have moved deep in the money on the single-day move.
Intel reported Q1 revenue of $13.6 billion, up 7% year over year and ahead of the $12.4 billion consensus, while non-GAAP earnings per share came in at $0.29 against a $0.01 loss expected on Wall Street. The Data Center and AI segment grew 22% to $5.1 billion as Xeon demand accelerated alongside the broader AI infrastructure buildout. CEO Lip-Bu Tan framed the quarter around a shift toward inference and agentic workloads, saying the trend is "significantly increasing the need for Intel's CPUs." Q2 guidance of $13.8 billion to $14.8 billion points to continued momentum rather than a one-quarter spike.
Why it matters
The stake's near-tripling in under a year recasts U.S. industrial policy as an active equity position rather than a passive grant program. By converting subsidies into equity at $20.47, the government effectively underwrote Intel's turnaround at the bottom of its cycle — a structural bet that the foundry and AI roadmap would eventually re-rate. With warrants layering in another 5% at $20, the administration's total exposure now exceeds $50 billion at current prices, making the federal government one of the largest single shareholders in a U.S. semiconductor company.
The $26.5B paper gain also creates political and fiscal optics: critics of the CHIPS Act will be forced to reckon with a position that has already returned several multiples of the original outlay, while supporters gain ammunition for further state-directed capital deployment into strategic industries.
Frequently asked questions
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How did the U.S. government end up with a 9.9% stake in Intel?
The Trump administration converted $8.9 billion in CHIPS Act grants and Secure Enclave funding into 433.3 million Intel shares at $20.47 apiece in August 2025, giving the federal government roughly a 9.9% ownership stake in the company.
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What is the U.S. government's Intel stake worth after the rally?
With Intel trading near $81.80 in pre-market trading on Friday, the 433.3 million-share position is valued at approximately $35.4 billion — an unrealized gain of roughly $26.5 billion on the original $8.9 billion outlay.
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What drove Intel's 22% pre-market surge?
Intel posted Q1 revenue of $13.6 billion versus the $12.4 billion consensus and non-GAAP EPS of $0.29 versus a $0.01 loss expected, with the Data Center and AI segment growing 22% to $5.1 billion on accelerating Xeon demand for inference workloads.
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Does the government also hold Intel warrants?
Yes. The government holds warrants to purchase an additional 5% stake at $20 per share, options that have moved deep in the money on the rally and would lift total government exposure above $50 billion at current prices.
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What did Intel guide for Q2?
Intel guided Q2 revenue to a range of $13.8 billion to $14.8 billion, implying continued sequential growth and signaling that the data-center beat is not a one-quarter spike.
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