Latest news with #governmentstake
Yahoo
3 days ago
- Business
- Yahoo
Intel Jumps As Trump Explores Investment In Bid To Revive US Chip Ambitions
Intel Corp. (NASDAQ:INTC) gained Friday after Bloomberg reported that the Trump administration is weighing taking a stake in the chipmaker, following a meeting between President Donald Trump and CEO Lip-Bu Tan. Jim Cramer said Intel's weak balance sheet makes a potential government stake critical to finishing projects that former CEO Pat Gelsinger couldn't fund. Tim Seymour of Seymour Asset Management warned that nationalizing a company is 'not conventional' and has historically sparked sell-offs, but acknowledged the political and strategic backdrop behind Trump's potential investment in Intel's long-delayed Ohio shares rose in after-hours trading Monday after President Donald Trump softened his stance following a White House meeting with CEO Lip-Bu Tan, whom he had urged to resign last week over alleged China ties. Cramer had earlier criticized Intel's $18.8 billion foundry loss in 2024 despite $8.5 billion in U.S. subsidies, questioning the viability of domestic chipmaking and warning investors to sell the stock as Advanced Micro Devices (NASDAQ:AMD) and Qualcomm (NASDAQ:QCOM) gain ground. Intel's 18A process has hit yield issues, threatening its ability to profitably produce advanced chips and undermining efforts to close the gap with Taiwan Semiconductor Manufacturing Co (NYSE:TSM). The setback comes as rivals gain ground, while Intel faces internal headwinds, including multiple senior executive departures, a workforce reduction targeting thousands of positions, and the delay of its long-touted Ohio fab project into the 2030s. Fitch downgraded Intel's credit rating, citing uncertain profitability in its foundry pivot, operational turbulence from leadership instability, and the mounting impact of missed timelines. Intel stock gained 23% year-to-date, topping the NASDAQ 100 Index's over 13% returns. Intel stock dropped over 9% after second-quarter results showed a revenue beat on tariff-related pull-ins but weak margins and cautious guidance. Management forecasts that the third-quarter revenue will be $13.1B, above consensus, but the gross margin guidance of 36% lagged expectations. Analysts flagged persistent competitive pressure from AMD and Arm (NASDAQ:ARM), Intel's lack of an AI pipeline, and a capex-heavy manufacturing model. Benchmark warned Intel may need years to improve design and manufacturing competitiveness. At the same time, Bank of America Securities, Rosenblatt, and Needham said the turnaround remains slow despite stronger-than-expected first-half sales. Price Action: INTC stock is trading higher by 2.89% to $24.55 at last check Friday. Image via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? INTEL (INTC): Free Stock Analysis Report This article Intel Jumps As Trump Explores Investment In Bid To Revive US Chip Ambitions originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
CTV News
4 days ago
- Business
- CTV News
Intel jumps on report of possible U.S. government stake buy
Intel CEO Lip-Bu Tan delivers a speech during the Computex 2025 exhibition in Taipei, Taiwan, Monday, May 19, 2025. (AP Photo/Chiang Ying-ying, File) Shares of Intel surged 4.6 per cent in premarket trading on Friday after Bloomberg News reported that the Trump administration is in talks with the struggling chipmaker for the U.S. government to potentially take a stake in the company. The reported discussions follow a meeting this week between U.S. President Donald Trump and Intel CEO Lip-Bu Tan, days after Trump called for Tan's resignation over alleged China-linked investments. Intel on Thursday declined to comment on the report. A potential deal could highlight the White House's increasingly hands-on approach to securing strategic industries, with analysts saying Intel could benefit from direct federal backing as it tries to revive its loss-making foundry business. 'Greater government participation could push U.S. fabless chipmakers to leverage Intel's facilities,' said Angelo Zino, senior equity analyst at CFRA Research. 'But this doesn't change Intel's product outlook. We're still waiting to see if it finds a white knight to lead its external foundry push.' Intel last month warned it may exit chip manufacturing without external customers, and plans to slow construction on its Ohio factories. Matt Britzman, senior equity analyst at Hargreaves Lansdown, said the move could be a 'game-changer' for Intel's domestic ambitions, but warned that execution risks remain. 'Government support might help shore up confidence, but it doesn't fix the underlying competitiveness gap in advanced nodes.' The news comes at the end of a volatile week for Intel, with its shares rallying nearly 20% since Monday amid hopes of easing tensions between Tan and Trump. Reporting by Alun John in London and Rashika Singh in Bengaluru; Editing by Jan Harvey and Rashmi Aich, Reuters
Yahoo
4 days ago
- Business
- Yahoo
Intel stock surges on report Trump administration mulls taking stake in company
Shares of Intel (INTC) jumped more than 7% on Thursday following a report the US government is considering taking a stake in the struggling chipmaker. According to Bloomberg, the plan could see the government help Intel build out its planned chip complex in Ohio, which the company has had to delay as part of its ongoing turnaround effort. Intel announced the facility in 2022 with an initial investment of $20 billion that could grow to $100 billion over time. The report follows President Trump's meeting with Intel CEO Lip-Bu Tan on Monday. The Ohio site was supposed to include two new manufacturing plants and start producing chips by 2025, but that's since been delayed into the 2030s. CEO Lip-Bu Tan, who took over when former CEO Pat Gelsinger was ousted by the company's board due to the slow turnaround in 2024, has since delayed the plant even further. The Trump administration is making a major push to reshore American chip manufacturing. Intel and rivals TSMC (TSM), Samsung, and others, have been working to build more chip fabricating plants in the US since the Biden administration signed the CHIPS Act in 2022. Part of Intel's plan under Gelsinger was to turn Intel into a contract chip manufacturer, similar to TSMC. But the gambit has run into trouble. So far, the foundry's main customer is still Intel, and the company is reportedly facing headwinds in getting its 18A chip technology up to the level needed to statisfy clients. Intel has signed agreements to build chips for Amazon (AMZN) and Microsoft (MSFT) using its chip designs. Trump initially called for Tan to resign as CEO of Intel due to his investments in Chinese tech firms, but backed away from the stance after meeting with him on Monday. Intel is still far away from making any meaningful headway in the AI space, ceding the market to both Nvidia and rival AMD. Earlier this week, the White House announced the US government will take a 15% cut of the sale of Nvidia and AMD chips shipped to China, an unconventional arrangement that highlights the government's increased focus on the semiconductor industry. Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Intel stock surges on report Trump administration mulls taking stake in company
Shares of Intel (INTC) jumped more than 7% on Thursday following a report the US government is considering taking a stake in the struggling chipmaker. According to Bloomberg, the plan could see the government help Intel build out its planned chip complex in Ohio, which the company has had to delay as part of its ongoing turnaround effort. Intel announced the facility in 2022 with an initial investment of $20 billion that could grow to $100 billion over time. The report follows President Trump's meeting with Intel CEO Lip-Bu Tan on Monday. The Ohio site was supposed to include two new manufacturing plants and start producing chips by 2025, but that's since been delayed into the 2030s. CEO Lip-Bu Tan, who took over when former CEO Pat Gelsinger was ousted by the company's board due to the slow turnaround in 2024, has since delayed the plant even further. The Trump administration is making a major push to reshore American chip manufacturing. Intel and rivals TSMC (TSM), Samsung, and others, have been working to build more chip fabricating plants in the US since the Biden administration signed the CHIPS Act in 2022. Part of Intel's plan under Gelsinger was to turn Intel into a contract chip manufacturer, similar to TSMC. But the gambit has run into trouble. So far, the foundry's main customer is still Intel, and the company is reportedly facing headwinds in getting its 18A chip technology up to the level needed to statisfy clients. Intel has signed agreements to build chips for Amazon (AMZN) and Microsoft (MSFT) using its chip designs. Trump initially called for Tan to resign as CEO of Intel due to his investments in Chinese tech firms, but backed away from the stance after meeting with him on Monday. Intel is still far away from making any meaningful headway in the AI space, ceding the market to both Nvidia and rival AMD. Earlier this week, the White House announced the US government will take a 15% cut of the sale of Nvidia and AMD chips shipped to China, an unconventional arrangement that highlights the government's increased focus on the semiconductor industry. Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
