President Donald Trump on Monday defended the country’s 10% stake in Intel, slamming critics of the deal in a morning social media post.
“I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS,” Trump wrote on Truth Social ahead of the opening bell on Wall Street. “All goes to the USA. Why are ‘stupid’ people unhappy with that? I will make deals like that for our Country all day long. I will also help those companies that make such lucrative deals with the United States States. I love seeing their stock price go up, making the USA RICHER, AND RICHER. More jobs for America!!! Who would not want to make deals like that?”
Intel shares have gained 28% this month, fueled by the deal to help shore up the struggling chipmaker and focus on American-made semiconductors. The Trump administration is considering more similar deals, according to White House economic advisor Kevin Hassett.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| INTC | INTEL CORP. | 25.17 | +0.37 | +1.49% |
TRUMP ANNOUNCES INTEL DEAL
“I’m sure that at some point there’ll be more transactions, if not in this industry, then other industries,” Hassett told CNBC.
The $11 billion stake is a combination of common stock and grants from the U.S. CHIPS and Science Act formed during the Biden administration under former CEO Pat Gelsinger, who was forced out of his role as the company fumbled.
“The government intervention in the free-market economy happened when the CHIPS Act was passed. Remember, it was a grant. And what President Trump has done is turn that grant into an equity position,” Larry Lindsey, a former director of the National Economic Council, said on “Mornings With Maria.” “So I don’t think there’s any increase in socialism here. I think socialism was already committed when we started allocating capital the way we did back then.”
Intel CEO Lip-Bu Tan will continue leading the company after Trump called off his initial recommendation that he be fired over his ties to China.
TRUMP DEMANDS INTEL CEO BE FIRED
“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American-made,” said Tan in announcing the deal.
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The investment is also aimed at helping Intel regain its footing. It reported a second quarter loss of $2.9 billion, or $0.67 per share, while revenue of $12.9 billion was little changed from the year-ago period.
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