Intel (INTC) Soars 4.36% on Trump's Potential Investment

Intel's stock price surged by 4.36% in pre-market trading on August 15, 2025, driven by speculation surrounding potential government intervention and strategic investments.

Recent reports indicate that the Trump administration is considering taking a stake in Intel, which has been facing significant financial challenges. This potential investment comes amid tensions over CEO Chen Lifewoo's investments linked to China and Intel's struggles in the AI chip manufacturing sector. The discussions follow a meeting between Intel's CEO and President Trump, which has reportedly shifted Trump's opinion of Chen in a positive direction.

Industry experts suggest that government investment could provide short-term financial relief for Intel, particularly aiding in the construction of its Ohio plant. However, there are concerns that such an investment may not address the company's long-term technological lag. Intel has been implementing cost-cutting measures, including a 15% workforce reduction, to navigate its financial struggles.

Despite competition from TSMC and Samsung, Intel remains the only U.S. company capable of manufacturing cutting-edge chips domestically. The potential government investment aligns with Trump's push for domestic chip production, highlighting Intel's strategic importance to U.S. national and economic security interests.