Intel (INTC) is reportedly courting fresh investment from large investors at a discount, just days after SoftBank’s $2 billion funding deal and amid speculation that the Trump administration is interested in taking an equity stake.
Intel’s stock was down more than 7% in morning trade on Wednesday. On Stockwits, retail sentiment around the company moved lower within ‘extremely bullish’ territory amid ‘extremely high’ levels of chatter.
According to a report by CNBC, the company needs additional funding to build products aligned with customer demand, and that converting CHIPS Act subsidies into equity would risk diluting existing shareholders.
The news comes after Commerce Secretary Howard Lutnick confirmed on Tuesday that the U.S. government was looking into taking an equity stake in the company in exchange for government funding committed under the CHIPS Act. “We want Intel to be successful in America,” Lutnick told CNBC in an interview, adding that the stake would be non-voting. That means even though the government will have a stake in Intel, it will not be exercising any governance over the company.
According to Bloomberg, the Trump administration is looking to acquire up to a 10% stake in the company to strengthen domestic semiconductor production. People familiar with the matter said officials are considering converting some or all of Intel’s $10.9 billion in pledged CHIPS and Science Act grants—covering both commercial and military projects—into equity. It noted that at Intel’s current market value, a 10% holding would be worth roughly $10.5 billion.
The developments come as Intel works to turn around years of declining sales and eroding market share. The company has struggled to capture the momentum of the AI boom, with rivals such as Nvidia (NVDA) and Taiwan Semiconductor Manufacturing Co. (TSM) taking the lead.
Meanwhile, the Trump administration is pushing to bring semiconductor manufacturing back onshore as part of its broader industrial policy.
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