Intel Stock Is Cratering After Trump Poured Taxpayer Money Into the Chipmaker

In August 2025, the Trump administration made a $8.9 billion investment in Intel, a leading US chipmaker, as part of a $100 billion initiative to enhance semiconductor supplies. This move appeared promising initially, as Intel's shares surged, quadrupling the initial government investment. However, Intel's fortunes took a sharp turn on Friday, when its stock plummeted by nearly 30 percent, leading to a significant devaluation of the government's 9.9 percent equity stake.

Intel's shares are now trading around $60, far below the $95 touted by President Trump, highlighting the volatility that can arise from government stakes in publicly traded companies. This swing underscores the unpredictable nature of investor sentiment and the potential for significant gains or losses when the government takes a major position in a company.

Intel's recent performance reflects the broader challenges faced by the personal computing industry, which has been hit hard by the rise of artificial intelligence, driving up prices and reducing consumer demand. The company also grapples with supply chain issues, further complicating its prospects. As investors weigh their options, the fate of Intel, along with other tech giants like Alphabet, remains uncertain, reflecting a broader reckoning within the industry.