Intel shares slid 5% after a Bloomberg report revealed that the Trump administration is weighing taking about a 10% stake in the company.
Sources told Bloomberg that officials are considering converting some or all of Intel’s $10.9 billion in Chips and Science Act grants into equity. At current market prices, a 10% holding would be valued near $10.5 billion. The precise size of any stake — and whether the plan will move forward at all — remains uncertain, according to people familiar with the discussions who asked not to be named.
The White House has not confirmed any details.
The report also noted that officials may be exploring similar conversions of other Chips Act awards into equity stakes, though it’s unclear whether the idea has significant support within the administration or has been raised with other chipmakers.
Intel stock had surged 23% last week — its strongest weekly performance since February — after initial speculation about a government investment. But on Monday, traders appeared to rethink the implications, pushing the shares lower.