{"id":42812,"date":"2025-08-23T11:40:26","date_gmt":"2025-08-23T11:40:26","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/23\/intel-stock-pops-7-as-trump-confirms-stake-but-some-say-its-a-recipe-for-disaster\/"},"modified":"2025-08-23T11:40:26","modified_gmt":"2025-08-23T11:40:26","slug":"intel-stock-pops-7-as-trump-confirms-stake-but-some-say-its-a-recipe-for-disaster","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/23\/intel-stock-pops-7-as-trump-confirms-stake-but-some-say-its-a-recipe-for-disaster\/","title":{"rendered":"Intel stock pops 7% as Trump confirms stake, but some say it\u2019s a \u2018recipe for disaster\u2019"},"content":{"rendered":"
<\/div>\n

Intel Corp (NASDAQ: INTC) is rallying late on Friday after President Donald Trump confirmed the US government has finalised a deal to take a 10% equity stake in the beleaguered chipmaker.<\/p>\n

The aforementioned agreement marks an extraordinary federal intervention in corporate America.<\/p>\n

The announcement, expected to be formalized later in the day, follows a $2.0 billion boost INTC received from Softbank \u2013 signalling renewed investor confidence in its turnaround efforts.<\/p>\n

Intel’s stock has been in a sharp uptrend in August. Including today\u2019s rally, it\u2019s up roughly 30% versus the start of this month.<\/p>\n

At the time of writing, the stock was up 7% at $25.15.<\/p>\n

Why a government stake may prove positive for Intel stock?<\/h2>\n

Federal support could offer INTC stock<\/a> the much-needed breathing room as it attempts to revive its foundry division and compete with global rivals.<\/p>\n

Experts anticipate capital infusion and political backing to help secure new customers for Intel\u2019s advanced manufacturing facilities, despite its weak product roadmap.<\/p>\n

The move also signals a broader commitment to reshoring semiconductor production, which could benefit Intel as a strategic national asset.<\/p>\n

With geopolitical tensions rising and chip supply chains under scrutiny, INTC\u2019s alignment with national security goals may enhance Intel stock\u2019s long-term valuation.<\/p>\n

Why Professor Walter Isaacson isn\u2019t in favor of INTC-US deal<\/h2>\n

While the Trump administration taking a stake in the semiconductor firm sure could prove positive for Intel shares, critics warn the deal reflects a troubling shift toward state capitalism.<\/p>\n

In a recent CNBC interview<\/a>, Tulane University professor Walter Isaacson expressed concern over the precedent. \u201cYou\u2019re seeing state capitalism here, where the government is interfering in all sorts of ways in corporate decisions,\u201d he said.<\/p>\n

Isaacson cautioned that such interventions often evolve into crony capitalism, where favoured companies benefit from political ties rather than market merit.<\/p>\n

\u201cThat is a recipe for not only disaster but just sort of a corrupt sense of messiness,\u201d he added.<\/p>\n

According to the industry expert, direct equity stakes risk undermining free-market dynamics and investor confidence. Note that INTC shares are still down nearly 9.0% versus its year-to-date high.<\/p>\n

Are INTC shares worth investing in today?<\/h2>\n

Intel stock may look attractive in the short term, buoyed by federal backing and strategic relevance.<\/p>\n

However, long-term investors should weigh the risks of political entanglement and execution challenges. <\/p>\n

The foundry business remains unprofitable, and the company\u2019s product roadmap lags behind competitors like Nvidia and TSMC.<\/p>\n

While government support could stabilize operations, it may also introduce regulatory overhang and distort competitive incentives.<\/p>\n

For risk-tolerant investors betting on US manufacturing revival, INTC shares offer upside. But for those wary of policy-driven volatility, it may be wise to wait for clearer signs of operational turnaround and market-driven growth.<\/p>\n

Note that Wall Street also currently rates Intel shares at \u201chold\u201d only, with the mean target of about $22 indicating potential \u201cdownside\u201d of roughly 8.0% from here.<\/p>\n

The post Intel stock pops 7% as Trump confirms stake, but some say it’s a ‘recipe for disaster’<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Intel Corp (NASDAQ: INTC) is rallying late on Friday after President Donald Trump confirmed the US government has finalised a deal to take a 10% equity stake in the beleaguered chipmaker. The aforementioned agreement marks an extraordinary federal intervention in corporate America. The announcement, expected to be formalized later in the day, follows a $2.0 <\/p>\n","protected":false},"author":1,"featured_media":42813,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-42812","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=42812"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42812\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/42813"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=42812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=42812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=42812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}