Intel Shares Surge on Presidential Endorsement and Strategic Milestones

A public endorsement from former President Donald Trump provided significant momentum for Intel Corporation's stock. Following a meeting with CEO Lip-Bu Tan, Trump praised the company on his Truth Social platform, highlighting the government's profitable financial stake. This commentary coincided with the equity soaring over 10% to establish a fresh 52-week high.

The U.S. government became Intel's largest single shareholder in August 2025, acquiring a 10% position financed by $8.9 billion from the CHIPS Act. Trump emphasized that this investment had already generated "tens of billions of dollars for the American people" in just four months. The data substantiates this claim: Intel's share price has appreciated by 75% since the government's entry. With an initial purchase price of $20.47 per share, the stake's value now exceeds $18 billion.

Concurrent with this political support, Intel unveiled its Core Ultra Series 3 processors at CES 2026. These Panther Lake chips, built on the 18A process, represent the first sub-2-nanometer CPUs to be entirely developed, manufactured, and packaged within the United States. Company statements indicate that demand for these processors, seen as pivotal to Intel's competitive recovery, is outstripping supply—a condition anticipated to persist throughout 2026.

Should investors sell immediately? Or is it worth buying Intel?

Operational Restructuring Bears Fruit

Since assuming the CEO role in March 2025, Lip-Bu Tan has implemented a rigorous cost-cutting strategy. This has involved substantial workforce reductions, a revised timeline for the Ohio fabrication plant pushing its opening to 2030/31, and a sharpened focus on in-house production of advanced semiconductors. These measures are reflecting in the financials: third-quarter revenue increased 3% to $13.7 billion. The company reported a significantly improved gross margin alongside lower operating expenses, allowing the operating margin to return to positive territory.

Valuation Reaches an Inflection Point

Intel's market capitalization now stands at approximately $227 billion, signaling a transition from a perceived bargain to a fair-value investment. The stock trades well above the government's entry point and has more than doubled within a twelve-month period. While the market has largely priced in the ongoing turnaround, this new valuation level increases the potential for severe punishment should future results disappoint investors.