US Government’s Intel Stake Surges as Chipmaker Stock Rallies

(MENAFN) The United States government has seen a sharp increase in the value of its investment in semiconductor firm Intel, with estimated unrealized gains reaching around $27 billion as the company’s share price has more than doubled since the start of the year.

Intel shares rose over 20% in a single trading session following stronger-than-expected financial results. The company reported first-quarter 2026 revenue of $13.6 billion, marking a 7% year-on-year increase and surpassing market expectations. The upbeat performance, combined with an optimistic outlook for the next quarter, contributed to one of the company’s strongest daily stock performances in years.

The surge has pushed Intel’s market valuation significantly higher, with shares now up roughly 125% since the beginning of the year, making it one of the top performers in the S&P 500 index and boosting broader tech markets.

The government’s position in the company grew after it acquired about a 10% stake in August 2025, purchasing approximately 433 million shares at an average price of $20.47. The investment was part of a broader policy effort to strengthen domestic semiconductor manufacturing capacity amid rising competition in artificial intelligence and national security concerns involving China.

Intel’s leadership attributed the company’s outlook to growing demand for advanced computing infrastructure, including processors and chip packaging technologies used in emerging AI applications.

The rebound marks a significant turnaround for the company, which had previously experienced a steep decline in 2024, including major leadership changes and its worst annual stock performance in decades.

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