Intel Rallies 10.8% as Trump Backs CEO Lip-Bu Tan Amid Chip Manufacturing Push

The sharemarket today saw semiconductor stocks moving in divergent directions, with Intel (NASDAQ:INTC) commanding attention after gaining 10.8% to $45.55 on Friday. The company, which went public back in 1980 and has appreciated 13,893% since, drove trading volume to 182.5 million shares—a figure that dwarfed its typical three-month average of 91 million.

The catalyst? Fresh endorsement from President Trump, who publicly praised both Intel and CEO Lip-Bu Tan, declaring, “The United States Government is proud to be a shareholder of Intel.” This political backing comes on the heels of Intel’s CES announcement regarding shipment of its latest Core Ultra Series 3 processors.

Broader Market Context

The S&P 500 climbed 0.64% to 6,966, while the Nasdaq Composite added 0.81% to settle at 23,671. Within the semiconductor patch, the picture looked mixed: Advanced Micro Devices dropped 0.74% and Nvidia retreated 0.12%, making Intel’s double-digit jump notably more impressive by comparison.

Why Government Backing Matters

The $9 billion initial U.S. government investment in Intel, deployed in August 2024, has now more than doubled in value on paper. Beyond Washington’s support, Nvidia pumped in $5 billion late last year, signaling confidence in the chipmaker’s turnaround potential. These financial commitments underscore Intel’s strategic importance to domestic semiconductor leadership.

The Bigger Picture

Still, Intel remains a $200 billion entity that hasn’t yet achieved positive free cash flow. With intense competition and the AI boom reshaping industry dynamics, the company faces considerable work ahead to justify the confidence from both government and private investors. The recent price action suggests the market is willing to give Intel the benefit of the doubt—at least for now.