U.S. government's Intel stake surges to $36B after Q1 earnings beat

The United States government owns approximately 433 million shares of Intel, acquired last August for $8.9 billion at $20.47 per share. After Intel's stock surged more than 20% following a first-quarter earnings beat, that stake is now worth roughly $36 billion. The unrealised gain is $26.5 billion, a 300% return in eight months. The CHIPS and Science Act, signed in 2022, allocated $52 billion for domestic semiconductor manufacturing. Intel was awarded the largest share: $8.5 billion in grants plus $11 billion in loans. When the Trump administration took office, it opposed the programme's conditions, which included project labour agreements, union crew requirements, restrictions on stock buybacks for five years, and a commitment by Intel to invest $100 billion of its own capital. The administration converted $5.7 billion in unpaid CHIPS Act funds and $3.2 billion from the Secure Enclave defence programme into a direct equity stake. First-quarter revenue was $13.6 billion, 10% above the consensus estimate. Adjusted earnings per share came in at $0.29, twenty-nine times the $0.01 analysts had expected. Data centre and AI revenue hit $5.1 billion, up 22% year over year. Intel's stock is up more than 80% year to date, after rising 84% in 2025. The government holds no board seat and has agreed to vote its shares in alignment with Intel's board. Intel 18A, the process node that integrates RibbonFET gate-all-around transistors and PowerVia backside power delivery, reached high-volume manufacturing in January 2026. Yields exceed 60%. Microsoft is using Intel Foundry to produce custom AI accelerators. Amazon is commissioning custom Xeon chips and an AI fabric chip. Nvidia invested $5 billion in Intel common stock. No one in Washington has articulated a plan for what to do with the $36 billion stake. Analysts remain split: of 30 covering Intel, 11 rate it a buy, 24 a hold, and 5 a sell.