Intel Jumps 10% After CEO Tan Meets Trump at White House
Intel stock surges after CEO Lip-Bu Tan meets with President Trump, who touts the chipmaker's 'national champion' status as the US government stake doubles in value.
Intel had a week. First the CES 2026 announcement showcasing Core Ultra Series 3 chips. Then a White House meeting that sent shares up double digits.
CEO Lip-Bu Tan met with President Trump on Thursday, and the president wasted no time celebrating. "We made a GREAT Deal, and so did Intel," Trump wrote on Truth Social. "Our Country is determined to bring leading edge Chip Manufacturing back to America, and that is exactly what is happening!"
The stock closed Friday up 10.8% at $45.55, capping a rally that's more than doubled the shares since the US government took a stake in August.
The Government Bet Pays Off
In August, the White House negotiated an $8.9 billion investment in Intel, purchasing 433.3 million shares at $20.47 each. At Friday's close, that stake is worth $19.74 billion—a gain of more than $10 billion in less than six months.
The government now owns roughly 5.5% of Intel, with additional purchases planned. It's an unusual arrangement: the federal government as both regulator and shareholder in a critical domestic manufacturer. But the national security calculus is straightforward. TSMC dominates advanced chipmaking, and that manufacturing concentration in Taiwan creates strategic vulnerability.
Intel's domestic fabrication capabilities address that risk directly.
What Tan Showed Trump
The meeting wasn't just ceremonial. Tan presented production-ready wafers of the Panther Lake architecture—Core Ultra Series 3 processors built on Intel 18A, the most advanced semiconductor process ever manufactured in the United States.
These are the first sub-2-nanometer chips designed, manufactured, and packaged entirely on American soil. That's the milestone that justifies the CHIPS Act investment and explains the White House victory lap.
For Intel, the message matters as much as the technology. Under Tan's predecessor Pat Gelsinger, the company struggled to execute its manufacturing roadmap while hemorrhaging market share to AMD. Tan, who took over in March 2025, has moved aggressively to stabilize the business. The government stake, combined with investments from Nvidia and SoftBank, provided capital to continue the foundry buildout.
The Turnaround Question
Intel bulls point to 18A as proof the turnaround is real. The company can manufacture competitive chips at scale, compete in the AI PC segment, and serve as the domestic anchor for advanced semiconductors.
But the stock has been on a rollercoaster for a reason. Intel shares dropped 60% in 2024 amid foundry struggles and persistent market share losses. AMD continues to gain in data center. Qualcomm's ARM-based chips challenge Intel in laptops. The company's foundry services have yet to attract major external customers.
The White House meeting provides political tailwinds, but the commercial challenges remain. Intel needs to convert 18A technology into market share gains, and that battle plays out over the next 12-18 months.
What Traders Are Watching
The 10% Friday move puts Intel near technical resistance around $47. The stock hasn't traded above $50 since early 2024, when optimism about the manufacturing roadmap last peaked.
Volume was heavy—more than double the 90-day average—suggesting institutional interest. The Trump endorsement and government stake create a floor of sorts: Washington has a vested interest in Intel's success.
For traders, the setup is binary. If 18A delivers commercial wins, the stock reprices toward its historical multiple. If execution stumbles, the political goodwill won't prevent another selloff. The semiconductor sector has rewarded execution and punished disappointment with equal vigor.
The next catalyst: fourth-quarter earnings in late January. That's when management provides visibility on customer traction for 18A-based products and updates on foundry services progress.