President Donald Trump said he should have asked for a larger stake in Intel Corporation (INTC), the U.S. chipmaker that makes CPUs, data center chips, and other key parts for PCs and servers.
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The comment comes months after the U.S. took a near 10% stake in Intel. That deal was tied to public chip funds that had been set aside for the company. Since then, Intel stock has jumped more than 300%, helped by fresh hope around AI demand, chip supply, and U.S. tech policy.
In an interview with Fortune, Trump said he asked Intel CEO Lip-Bu Tan for “10% ownership for free.” Tan agreed, and Trump said, “S—, I should have asked for more.”
That line may grab the most focus. However, the bigger point is pretty clear. Intel is no longer seen as just a weak chip name and is now viewed as a U.S.-backed chip bet with a major role in the AI buildout.
Meanwhile, INTC shares dropped 6.18% on Friday, closing at $108.77.
Intel Is Being Recast as a U.S. AI Chip Bet
In fact, Intel’s rally has been backed by more than one theme. First, the U.S. stake gave the company a strong vote of trust. Next, demand for CPUs has come back into focus as AI data centers need more than just GPUs. In March, Nvidia CEO (NVDA) told CNBC that “CPUs are becoming the bottleneck” for AI.
This shift had a role in Intel’s resurgence. During the company’s latest earnings call, Tan said, “The CPU is reinserting itself as the indispensable foundation of the AI era.” He also said demand for Intel’s data center CPUs exceeds supply.
At the same time, Intel has gained from reports of major deals. Apple (AAPL) and Intel have been linked to a chip pact. In April, Tesla Inc. (TSLA) CEO Elon Musk also said he plans to rely on Intel’s future chips for his $119 billion Terafab plan.
The Rally Also Raises the Bar
Still, the stock’s sharp rise brings risk. After gaining more than 300%, Intel has far less room for weak results. The company still needs to prove it can make advanced chips at scale, win large clients, and turn public support into real profit growth.
There is also a policy risk. Trump’s comments show that Intel now sits close to U.S. chip policy, tariffs, and the broader race with China. That can help the stock when the market likes the story. However, it can also make shares more closely tied to political and trade headlines.
Taiwan Semiconductor Manufacturing Company (TSM), the global chip foundry leader, is still far larger than Intel by market value. Nvidia also remains the clear leader in AI chips. So, while Intel’s comeback story has been impressive, it is not yet proof that the company has closed the gap with the top chip names.
Even though Trump may wish he had taken a larger stake in Intel, investors now face a more practical question: Does Intel’s new role as a U.S.-backed AI chip play still leave room for more gains, or is much of the good news already priced into the stock?
Is Intel a Buy, Hold, or Sell?
Turning to Wall Street, Intel has a Hold consensus, based on 34 analysts’ ratings. The average INTC stock price target is $83.94, implying about a 22% downside from the current price.
