On Wednesday, President Donald Trump touted the federal government's investment in Intel Corp. (NASDAQ:INTC) as one of America's most lucrative strategic bets.
Trump Celebrates Massive Intel Windfall
In a post on Truth Social, Trump said the government's equity position in Intel had generated enormous returns since his administration authorized the investment last summer.
"I'm very proud of that Company in that I am responsible for making the United States of America over 30 Billion Dollars in the last 90 days on that stock alone," Trump wrote.
He added, "There are others that, likewise, I have been very successful with by taking pieces of the Equity for support."
How The US Government's Intel Investment Grew
The U.S. government acquired a 10% stake in Intel in August, purchasing 433.3 million shares at $20.47 per share for roughly $8.9 billion.
The funding included $5.7 billion from the CHIPS and Science Act and $3.2 billion from secure semiconductor initiatives.
With Intel stock closing Wednesday at $94.75, up 12.06%, the federal stake's value has surged to more than $41 billion, representing an unrealized gain exceeding $30 billion.
Political Divide Over Government Ownership
Trump previously called the arrangement a "great Deal for America."
Sen. Bernie Sanders (I-Vt.) supported the move, arguing taxpayers deserve returns when corporations receive federal aid.
"Taxpayers … have a right to a reasonable return on that investment," Sanders said.
However, Sen. Rand Paul (R-Ky.) criticized the deal, calling it "a terrible idea" and warning it represented government overreach.
Intel Beats Earnings, Revenue Estimates And Raises Q2 Outlook
Last week, Intel posted quarterly earnings of 29 cents per share, significantly surpassing analysts' consensus forecast of one cent.
The chipmaker reported quarterly revenue of $13.58 billion, topping Wall Street expectations of $12.42 billion by 9.28% and rising from $12.67 billion during the same quarter a year earlier.
Looking ahead, Intel projected second-quarter adjusted earnings of 20 cents per share, well above analysts' estimate of 9 cents, while forecasting revenue between $13.8 billion and $14.8 billion, compared with the Street's $13.07 billion expectation.
Price Action: Intel shares are up 4.24% in the after-hours trading, reaching $98.77, according to Benzinga Pro.
According to Benzinga Edge, the stock ranks in the 98th percentile for Momentum, highlighting robust strength across short, medium and long-term performance trends.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Phil Mistry on Shutterstock.com
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