Intel stock has surged by over 385% since the U.S. government reportedly acquired a 9.9% equity stake in the chipmaker in August 2025, turning the investment into a large unrealized gain as shares reached a new record high. President Donald Trump said the government is now up more than $30 billion on the Intel position after the stock continued to rise in early May 2026. The stake was reportedly acquired at $20.47 per share, while Intel closed at $99.62 on May 1 after touching an all-time high of $100.45 during the session. The reported transaction involved about 433.3 million shares purchased for roughly $8.9 billion. At the latest closing price, that stake would be worth about $43.1 billion, placing the unrealized gain above $34 billion. Trump praised Intel’s performance, saying he was proud of the company and the investment made on behalf of the United States. He also said other equity arrangements tied to federal support had performed well. U.S. Stake in Intel Becomes Major Market Winner The Intel investment was reportedly funded by converting $5.7 billion in unpaid CHIPS Act grants and $3.2 billion from the Secure Enclave program into equity. The deal gave the government a passive, non-voting stake without a board seat. With a 9.9% holding, the U.S. government became Intel’s largest single shareholder, according to the figures provided. The agreement also included a five-year warrant allowing the government to buy an additional 5% of Intel shares at $20 each if Intel loses majority control of its foundry business. The latest Intel rally has pushed the company’s market capitalization to about $500 billion. The stock traded as low as $18.97 over the past year before moving to a record level above $100. Intel shares rose about 5.4% in the latest session and traded higher after hours. The move extended gains that followed the company’s first-quarter earnings report, which drew attention from investors and market commentators. Earnings Beat Fuels Intel Stock Rally Intel reported first-quarter 2026 revenue of $13.58 billion, up 7% from a year earlier and above the $12.42 billion forecast. Adjusted earnings per share came in at $0.29, compared with expectations of $0.01. The Data Center and AI segment generated $5.1 billion in revenue, up 22%. Intel Foundry revenue increased 16% to $5.4 billion. The company guided for second-quarter revenue between $13.8 billion and $14.8 billion. CNBC’s Jim Cramer said Intel’s results exceeded his expectations and described the quarter as one of the company’s strongest revenue performances in years. He also pointed to margin expansion and stronger demand for central processing units linked to AI infrastructure. Intel’s newest server processors are reportedly seeing the fastest adoption curve for the company in five years. Chief Financial Officer David Zinsner said stronger CPU demand helped pricing power and margins. AI Demand and New Partnerships Support Outlook Intel’s rebound has been tied to stronger demand for AI-related computing hardware. The company’s Xeon 6 processors were selected for Nvidia’s DGX Rubin systems, and Intel announced a multiyear collaboration with Google for custom AI infrastructure. Intel also joined Elon Musk’s Terafab chip complex in Austin. Tesla has signaled plans to use Intel’s forthcoming 14A manufacturing process for future vehicles and robots. The company reported 90% yield rates for its EMIB packaging technology, a manufacturing benchmark watched closely as demand for advanced chip packaging rises across the semiconductor sector. Chief Executive Lip-Bu Tan, who took over more than a year ago, has been credited by market commentators with improving confidence in Intel’s direction. Cramer said the company appeared to have gone through a cultural shift under Tan’s leadership. The wider semiconductor sector also moved during the session. AMD gained 4.30%, while Arm Holdings declined 1.53%. Cramer said CPU-focused companies such as Intel and AMD could continue to draw investor attention through 2026, while also warning that sharp rallies can create timing risks for new buyers.
