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US Nets USD27B Gain from Intel Investment as Shares Soar
(MENAFN) The US government is sitting on an estimated $27 billion in unrealized gains from its stake in Intel, after the chipmaker's shares more than doubled since January in a stunning reversal of fortune for one of Silicon Valley's most storied names.
Intel stock surged more than 20% on Friday, a day after the company posted first-quarter revenue of $13.6 billion — a 7% year-on-year increase that outpaced analyst forecasts and ignited one of the company's strongest single-session rallies in decades. Shares were changing hands at $82.50, up approximately 125% since the start of the year, positioning Intel among the top performers in the S&P 500 and helping propel the tech-heavy Nasdaq Composite, with valuations approaching levels last seen during the dot-com era.
The meteoric climb has dramatically inflated the value of the federal government's position in the company. Washington acquired roughly 10% of Intel in August 2025, snapping up approximately 433 million shares at around $20.47 apiece — a strategic move designed to bolster domestic semiconductor manufacturing amid mounting national security concerns and intensifying AI competition with China.
CEO Lip-Bu Tan framed the momentum in terms of a broader structural shift reshaping demand for the company's products.
"The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel's CPUs, wafers, and advanced packaging offerings," said CEO Lip-Bu Tan.
A stronger outlook for the second quarter further cemented investor confidence, underpinning the stock's rapid ascent.
The turnaround is all the more striking against the backdrop of Intel's catastrophic 2024, when shares cratered 60% to below $19 — the company's worst annual performance on record — a collapse compounded by executive upheaval, including the exit of then-CEO Pat Gelsinger.
Intel stock surged more than 20% on Friday, a day after the company posted first-quarter revenue of $13.6 billion — a 7% year-on-year increase that outpaced analyst forecasts and ignited one of the company's strongest single-session rallies in decades. Shares were changing hands at $82.50, up approximately 125% since the start of the year, positioning Intel among the top performers in the S&P 500 and helping propel the tech-heavy Nasdaq Composite, with valuations approaching levels last seen during the dot-com era.
The meteoric climb has dramatically inflated the value of the federal government's position in the company. Washington acquired roughly 10% of Intel in August 2025, snapping up approximately 433 million shares at around $20.47 apiece — a strategic move designed to bolster domestic semiconductor manufacturing amid mounting national security concerns and intensifying AI competition with China.
CEO Lip-Bu Tan framed the momentum in terms of a broader structural shift reshaping demand for the company's products.
"The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel's CPUs, wafers, and advanced packaging offerings," said CEO Lip-Bu Tan.
A stronger outlook for the second quarter further cemented investor confidence, underpinning the stock's rapid ascent.
The turnaround is all the more striking against the backdrop of Intel's catastrophic 2024, when shares cratered 60% to below $19 — the company's worst annual performance on record — a collapse compounded by executive upheaval, including the exit of then-CEO Pat Gelsinger.
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