The US Has Lost $2.4 Billion on Its Intel Stake Today -- Barrons.com

By Adam Levine

One of Intel's largest shareholders is the U.S. government, stemming from an August deal that converted some of Intel's CHIPS Act subsidies into newly issued shares overseen by the Commerce Department.

With the stock down 15.2% in midday Friday trading, the government has taken a $2.4 billion loss on the day -- but has still notched a 121% return overall since August.

Over two tranches, the Commerce Department bought 278 million shares of Intel through the end of last year, at a weighted average price of $20.73. The stake cost $5.8 billion and is now worth $12.7 billion.

The government owns 5.6% of Intel's 5 billion shares, but more is expected to come. Intel is part of a special Department of Defense program called Secure Enclave, and 156 million Intel shares tied to it are issued, but still in escrow. They will be released as Intel meets program milestones, sold at $20 a share to the government. If all these shares were purchased, the government would own 8.7% of Intel.

As a result of these newly issued shares, coupled with those from Softbank and Nvidia investments, last week's Intel share count was up 15.4% from the year before.

Write to Adam Levine at adam.levine@barrons.com

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January 23, 2026 11:07 ET (16:07 GMT)

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