Government Stake in Intel Sparks Surge Reports yesterday that the Trump administration is exploring a potential equity stake in Intel (NASDAQ:INTC), a move that could significantly reshape U.S. semiconductor policy,

Intel (NASDAQ:INTC) shares surged 7% Thursday afternoon following a Bloomberg report that the Trump administration is discussing the possibility of the US government taking a stake in the chipmaker.

Despite the rocky relationship between President Donald Trump and CEO Lip-Bu Tan, the government is reportedly eyeing a stake in Intel.

Patrick Moorhead, Moor Insights and Strategy CEO, joins 'Power Lunch' to discuss Moorhead's reaction to the latest news regarding Intel, the government's ties to the company and much more.

A week after calling Intel’s CEO “conflicted,” Trump met with him. Now the U.S. is reportedly exploring a stake in the chipmaker.

A multi-day rally for Intel Corporation (NASDAQ: INTC) this week has pushed shares back toward the $22 level, with a surge of over 5% on August 11 that continued to August 12. This newfound momentum in Intel’s stock price was not driven by a new product or an earnings beat.

Trump’s comments indicate a change of heart since last Thursday, when he called for Lip-Bu Tan to “resign immediately ” because he is “highly conflicted” via a post on Truth Social. Such conflicts of interest were outlined in a letter by Arkansas Senator Tom Cotton the day before, who alleged Tan “has deep ties to the Chinese Communists.”