Overview of the Investment#
The U.S. government's investment in Intel is currently showing a profit of approximately $26 billion. This figure is based on Intel's share price as of Friday, which was around $81 per share.
Details of the Stake#
In August 2025, the U.S. government acquired a 9.9% stake in Intel at a price of $20.47 per share. This means that the government now holds about 433.3 million shares of Intel common stock. The significant increase in share price has resulted in a substantial paper gain for the government.
Additional Investment Opportunities#
The deal also included a five-year warrant, allowing the government to purchase an additional 5% of Intel's shares at $20 each. However, this option can only be exercised if Intel's ownership of its foundry business falls below 51%.
Recent Developments at Intel#
Since the U.S. made its investment, Intel has secured several major partnerships. Notably, NVIDIA invested $5 billion in late 2025 to work together on artificial intelligence infrastructure. Additionally, Tesla plans to utilize Intel’s advanced chip technology for its next-generation products. Google has also entered a multi-year agreement to buy Xeon processors from Intel and collaborate on custom chip development.
Strong Financial Performance#
Intel recently reported impressive first-quarter results, with earnings per share of $0.29, significantly exceeding analysts' expectations of $0.02. The company's revenue for the quarter reached $13.58 billion, surpassing the forecast of $12.41 billion. Looking ahead, Intel anticipates earnings of $0.20 per share for the second quarter of 2026, above the consensus estimate of $0.09, and expects revenue between $13.8 billion and $14.8 billion, compared to the consensus of $13.04 billion.