U.S. Government Acquires 10% Stake in Intel Amid Market Challenges and National Security Focus

In August 2025, the U.S. government acquired a 10% equity stake in Intel, investing nearly $9 billion to support the semiconductor giant amid industry challenges, marking an unusual intervention aimed at reinforcing national security and America's dominance in artificial intelligence. This move, funded largely through the CHIPS and Science Act of 2022, has sparked mixed reactions among lawmakers and experts, with some praising the strategic investment in a critical sector while others worry about potential market distortions and "pay for play" concerns. Intel's stock has experienced significant volatility, with a 26% gain in the last month and a 35% increase over the past year, despite ongoing revenue declines and competitive pressures, reflecting both investor optimism about a turnaround and persistent operational challenges. The company's leadership changes and renewed focus on innovation, particularly in foundry services and AI partnerships, signal efforts to regain market share and improve margins, though risks from rivals like AMD remain. Analysts forecast modest revenue growth of around 3.6% annually over the next three years, but Intel's price-to-sales ratio remains lower than many peers, indicating skepticism about its growth prospects. Overall, the government's stake in Intel represents a strategic bet on the country's technological future, while the company navigates a complex landscape of market expectations and competitive dynamics.