U.S. government sits on $26.5 billion gain from Intel stake, as shares surge 22%
The surge in Intel shares, up more than 22% after earnings, has significantly boosted the value of the U.S. government’s position.
By James Van Straten, AI Boost|Edited by Jamie Crawley Apr 24, 2026, 9:05 a.m. Make preferred on
What to know:
- The U.S. government’s stake in Intel, acquired at $20.47 per share, is now worth approximately $35.4 billion.
- Intel’s stronger-than-expected earnings, driven by AI and data center growth, fueled the sharp 22% rally in pre-market trading on Friday.
- Growth was led by Intel’s Data Center and AI segment, which rose 22% to $5.1 billion as demand for Xeon processors accelerates alongside the broader AI infrastructure buildout.
The U.S. government is holding an unrealized gain of roughly $26.5 billion on its Intel (INTC) stake after the chipmaker’s shares jumped more than 22% in pre-mrket trading on Friday, following a stronger-than-expected first-quarter earnings report.
The position stems from an August deal in which the Trump administration converted $8.9 billion in CHIPS Act grants and Secure Enclave funding into 433.3 million Intel shares at $20.47 apiece, giving it about a 9.9% ownership stake. With Intel trading near $81.80 in pre-marketing trading Friday, the holding is now valued at approximately $35.4 billion, nearly tripling in less than a year.
The government also holds warrants to purchase an additional 5% stake at $20 per share, options that are now deep in the money.
Intel’s rally was driven by a sharp earnings beat. The company reported first-quarter revenue of $13.6 billion, up 7% year over year and above Wall Street expectations of $12.4 billion. Non-GAAP earnings per share came in at $0.29, far exceeding the consensus estimate of a $0.01 loss.
Growth was led by Intel’s Data Center and AI segment, which rose 22% to $5.1 billion as demand for Xeon processors accelerates alongside the broader AI infrastructure buildout.
CEO Lip-Bu Tan pointed to a shift in AI computing toward inference and agentic workloads, saying the trend is “significantly increasing the need for Intel’s CPUs.”
Intel guided revenue in the range of $13.8 billion to $14.8 billion for the second quarter.
Artificial IntelligenceAI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.More For You
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