Friday’s rout shaved over $11 billion off the US government’s stake in Intel
Intel shares plummeted nearly 30% on Friday, wiping more than $11 billion from the federal government’s investment in the chipmaker, though the position remains profitable overall.
Last August, the Trump administration acquired a 9.9% equity stake in the company at a price of $20.47 per share, according to a corporate press release issued at the time.
That initial holding of 433.3 million primary shares was valued at approximately $8.9 billion. The investment’s value surged significantly earlier this year, with Intel (INTC) closing at $92.07 per share on Thursday, which implied a total value of $39.9 billion for the government.
However, the stock suffered a sharp decline on Friday following the company’s Thursday evening <a s stake to $28.5 billion.
(INTC)
65.76-26.31(-28.58%)
At close: October 30 at 4:00:01 PM EDT
64.89-0.87(-1.32%)
After hours: October 30 at 7:59:56 PM EDT
This rapid volatility highlights the risks inherent in government equity investments and poses a new challenge for a key component of the Trump administration’s portfolio, which includes 40 companies according to a CATO Institute tracker.
A nearly $150 billion loss for the company
Wall Street estimates and the firm reported a steeper-than-expected decline in PC revenue.
Intel anticipates fourth-quarter revenue between $15 billion and $16 billion, falling short of the $17 billion analysts had projected. The company expects earnings per share of $0.25, compared to the forecasted $0.43.
This outlook triggered a sell-off that, at certain points on Friday morning, put Intel on track for its worst performance since 1974, as the company shed nearly $150 billion in total market capitalization.
The government’s Intel investment—which Trump has pledged will generate substantial returns for taxpayers—remains a frequent topic for the White House. In September, an image posted to Truth Social depicted the president as a stock trader in the Oval Office, with Intel’s share price shown on a monitor at $95.
Trump has previously overstated the gains, claiming at one point, “I’ve made Hundreds of Billions of Dollars on Stocks, and many other type Holdings, for the U.S.A., not myself.”
Regardless, the Intel investment remains highly profitable and finished trading on Friday at more than three times the original purchase price.
This story has been updated.
