Intel's Stock Falls 2.33% Traded $1.56 Billion 40th in Market Activity Secures $5.7 Billion in Federal Funds with 9.9% Equity Stake

On August 29, 2025, Intel (INTC) closed down 2.33% with a trading volume of $1.56 billion, ranking 40th in market activity. The stock’s decline occurred amid a revised CHIPS Act funding agreement with the U.S. Department of Commerce. Intel announced it had accelerated access to $5.7 billion in federal funds by removing prior project milestones, enhancing financial flexibility. The updated terms retain restrictions on using the funds for dividends, buybacks, or expansion in specific countries.

The revised agreement involves Intel issuing 274.6 million shares to the U.S. government and granting an option for an additional 240.5 million shares under certain conditions. The company also allocated 158.7 million shares to an escrow account, contingent on future CHIPS Act funding releases for its Secure Enclave program. Intel reported $7.87 billion in expenditures on eligible CHIPS Act projects to date.

The U.S. government’s 9.9% equity stake, part of an $8.9 billion investment, raises broader implications for corporate governance, particularly as President Trump hints at similar deals. This stake complements $2.2 billion in prior grants, totaling $11.1 billion in support. Intel’s CFO emphasized the incentive aligns with retaining control of its foundry operations, a strategic priority for the chipmaker.

Backtest results indicate the revised agreement’s impact on Intel’s liquidity and operational flexibility remains neutral in the short term, with market reactions primarily driven by equity stake disclosures and funding timeline adjustments.