Intel Stock Jumps 3% Premarket After a 5.5% Rally in Prior Session as US Takes Nearly 10% Intel Stake

Intel stock jumped another 3% in premarket trading after a 5.5% rally in prior session.

President Donald Trump sealed a deal that give the US government a nearly 10% stake in Intel Corp., part of an unconventional bid to reinvigorate the beleaguered company and boost domestic chip manufacturing.

Under the agreement, the US will receive 433.3 million shares of common stock — representing 9.9% of the fully diluted common shares in Intel — according to a statement from the company. The $8.9 billion investment will be funded by grants from the US Chips and Science Act and Secure Enclave program that had previously been extended but not yet paid, Intel said, confirming a report by Bloomberg News.

Together with the $2.2 billion in Chips Act money that Intel already received, the investment totaled $11.1 billion. The shares are nonvoting, and there is no board seat for the US government.

“We are grateful for the confidence the president and the administration have placed in Intel, and we look forward to working to advance US technology and manufacturing leadership,” Intel Chief Executive Officer Lip-Bu Tan said in the statement.

In a social media post, Trump described the transaction as a “great Deal for America and, also, a great Deal for INTEL.”

“Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation,” he said.