What is the U.S. government's plan for Intel?

The U.S. government plans to acquire a 10% equity stake in Intel, allowing the company to receive funding through the CHIPS Act and gain additional government support.

How did Intel's stock perform on August 24, 2025?

Intel's stock gained 5.5% on August 24, 2025, outperforming the broader market which saw the S&P 500 jump 1.5% and the Nasdaq Composite surge 1.8%.

What did Federal Reserve Chair Jerome Powell say that impacted Intel's stock?

Powell's speech indicated that the Fed is leaning towards cutting interest rates in September, which boosted investor confidence and drove gains in Intel and other tech stocks.

Home / Business and Economy / Intel Surges on Fed Rate Cut Hopes and Potential U.S. Equity Stake

Intel Surges on Fed Rate Cut Hopes and Potential U.S. Equity Stake

24 Aug

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Summary

Intel stock gains 5.5% on Fed rate cut signals
Trump administration plans to acquire 10% stake in Intel
Intel to receive CHIPS Act funding, gain government support

Intel Surges on Fed Rate Cut Hopes and Potential U.S. Equity Stake

On August 24, 2025, Intel (NASDAQ: INTC) stock experienced a significant surge, gaining 5.5% in a day that saw the broader market also post strong gains. This rally was driven by a pair of bullish catalysts for the semiconductor company.

Firstly, the speech delivered by Federal Reserve Chair Jerome Powell earlier that day has restored market confidence in the central bank's plans to cut interest rates in September and potentially again later this year. While Powell acknowledged that inflation remains a challenge, he indicated that the risks to the U.S. economy appear to be more pressing, suggesting the Fed is leaning towards a rate cut next month. This news boosted Intel and many other tech stocks.

Secondly, a report published by Bloomberg revealed that the Trump administration is on track to announce that it will be taking a nearly 10% equity stake in Intel. This development will allow the company to receive funding allocated through the CHIPS Act and open the door for additional government support as artificial intelligence (AI) chip designs and fabrication technologies become increasingly crucial to the economy and national security.

The official announcement of the U.S. government's 10% stake in Intel arrived after the market closed on August 24th, with President Trump confirming the deal. This strategic partnership is expected to provide Intel with a significant financial and strategic advantage in the rapidly evolving semiconductor industry.

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