Intel’s strong earnings-driven rally has delivered a significant paper gain for the U.S. government, with its stake now up დაახლოებით $26.5 billion.
Shares of Intel (INTC) surged more than 22% in premarket trading Friday after the company posted first-quarter results that beat expectations across both revenue and earnings. The move lifted the value of the government’s holding to roughly $35.4 billion.
The position was established in August, when $8.9 billion in CHIPS Act grants and Secure Enclave funding was converted into 433.3 million shares at $20.47 each, giving the government a 9.9% stake. At current levels near $81.80, the investment has nearly tripled in value.
The government also holds warrants to acquire an additional 5% stake at $20 per share, which are now significantly in the money following the stock’s sharp rise.
Intel’s results underscored improving momentum in its core businesses. First-quarter revenue came in at $13.6 billion, up 7% year over year and above the $12.4 billion expected by analysts. Adjusted earnings reached $0.29 per share, far surpassing forecasts for a marginal loss.
The Data Center and AI segment was the primary growth driver, climbing 22% to $5.1 billion as demand for AI infrastructure and Xeon processors accelerated.
CEO Lip-Bu Tan said the growing shift toward inference and agentic AI workloads is driving increased demand for Intel’s CPUs.
Looking ahead, Intel guided for second-quarter revenue between $13.8 billion and $14.8 billion, signaling continued strength in underlying demand.
