Intel shares surge on reports of US Government Investment

Chipmaker stock jumps 3% following Bloomberg report of potential federal backing

Intel Corporation shares rose more than 3% in extended trading following a Bloomberg report indicating that the Trump administration is considering a government investment in the struggling chipmaker, potentially marking a significant intervention in the US semiconductor industry.

The reported investment consideration comes as Intel faces mounting pressure in the artificial intelligence chip market, where it has lost significant ground to competitors like Nvidia and AMD. The company has been working to regain market share while dealing with manufacturing challenges and increased competition from Asian chipmakers.

Applied Materials, a key supplier to Intel and other chipmakers, separately saw its shares tumble nearly 14% in premarket trading after issuing weak fourth-quarter forecasts citing sluggish demand from China and tariff-related risks.

The potential government investment in Intel reflects broader US strategic concerns about semiconductor supply chain security and domestic manufacturing capabilities. The administration has been increasingly focused on reducing dependence on foreign chip production while strengthening American technological competitiveness.

Intel’s struggles have been particularly pronounced in the data center and AI chip segments, where competitors have captured significant market share. The company has announced substantial investments in new manufacturing facilities but has faced delays and cost overruns in several projects.

For UK technology investors and companies with Intel partnerships, the potential government backing could provide greater stability for the chipmaker’s operations and supply chain relationships. However, questions remain about the structure and conditions of any potential investment.