Trump’s Intel Stake Surges by $4.9 Billion, Critics Warn of Insider Trading

Intel shares on Thursday experienced their biggest single-day rally in nearly four decades. The surge of 28% came after a surprise $5 billion investment from Nvidia, immediately boosting the value of the government stake pushed through by President Donald Trump from $9 billion to $14 billion – reigniting accusations of possible insider trading.

Intel’s Biggest Jump in 40 Years Intel stock soared to $31.79, delivering an instant paper gain of $4.9 billion for the Trump administration. According to official disclosures, the U.S. government now owns 433.3 million Intel shares, part of which is still held in escrow and will be gradually released under the CHIPS Act. Back in August, Trump quietly approved the deal to acquire these shares at $20.47 apiece. Intel later confirmed that 274.6 million shares were transferred directly to the Commerce Department, while 158.7 million shares remain in escrow pending further government payments.

Pentagon Eyes Similar Model for Defense Firms Commerce Secretary Howard Lutnick told CNBC that the Pentagon is actively considering using a similar equity stake model for major U.S. defense contractors. “There is a huge discussion about defense,” Lutnick said, noting that companies such as Lockheed Martin, which derive most of their revenue from federal contracts, are “essentially part of the U.S. government.” According to critics, Trump is opening the door to unprecedented state intervention in the private sector – this time in the defense industry.

CEOs Under Pressure, Critics Sound Alarm Sources reveal that Trump personally met with Intel CEO Lip-Bu Tan and Nvidia CEO Jensen Huang in the weeks leading up to the deal. Some Intel executives admitted they were uncomfortable with the president’s direct involvement. At one point, Trump even considered removing Intel’s CEO before settling on the government’s equity stake. The move highlights his governing style – direct control, corporate pressure, and pushing state dominance into areas previously left to private enterprise. Critics warn this trend could prove dangerous.

Economist Scott Lincicome of the Cato Institute wrote in the Washington Post: “The greatest immediate risk is that Intel’s decisions will increasingly be driven by political rather than commercial considerations.”

Allegations of Political Meddling – and “Socialism” Trump himself is unfazed by the backlash, telling reporters he would happily make such deals “all day long.” His strategy is clear: identify key companies, acquire massive stakes, and use government influence to drive outcomes. Senator Rand Paul quipped on X: “If socialism means government ownership of the means of production, wouldn’t the government owning part of Intel be a step toward socialism?”

The question of direct government ownership in strategic tech and defense firms is sparking a nationwide debate: where does legitimate state support end, and where does political control of markets begin?

#Intel , #TRUMP , #NVIDIA , #stockmarket , #worldnews

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