Intel Hits All-Time High on Apple Foundry Talks
In April 2025, Intel's stock was trading at $18. Fourteen months later, it hit an all-time high. The turnaround was not solely due to Intel's efforts but was largely driven by geopolitical factors.
May 5, 2026 - 6:27 pm
TL;DR
Intel reached its peak after Bloomberg reported Apple's preliminary talks with Intel for manufacturing chips in the United States. This news sent Intel's stock up by 14% in a single day, continuing an impressive year-to-date gain of over 330%, following the US government's significant investment in August 2025.
The Stake
The U.S. government invested $8.9 billion in Intel common stock, acquiring 433 million shares at $20.47 each. This investment was made through CHIPS Act grants and the Secure Enclave defense program, securing a 9.9% stake with no board representation but granting voting rights on specific shareholder matters. A five-year warrant to purchase an additional 5% at $20 per share is also included, under certain conditions.
This stake is now valued at approximately $36 billion, resulting in a remarkable return of over 300% within nine months.
The Government's Strategy
The government's investment was strategic rather than financial. Intel operates the only leading-edge semiconductor fabrication facilities within the United States, while TSMC dominates the global foundry market with a 64% share. National security officials have highlighted the concentration of advanced chip manufacturing in Taiwan, just 130 kilometers from mainland China, as a significant vulnerability for American industry.
The CHIPS Act aimed to mitigate this risk by ensuring Intel's long-term survival, and the government stake was designed to achieve that goal.
The Turnaround
Lip-Bu Tan replaced Pat Gelsinger as CEO in March 2025, following a contentious board meeting regarding Intel's performance. Despite initial challenges, Intel's stock has since undergone a remarkable transformation.