Intel’s comeback story is getting real. A combination of government pressure, fresh investment, and internal restructuring has put the chipmaker back in the conversation — and the stock has responded.
Intel (INTC) was trading around $109.84 before pulling back 2.40% on Friday. Despite the dip, the stock has more than quadrupled since Lip-Bu Tan became CEO in March 2025.
The Wall Street Journal reported Friday that the Trump administration played a direct role in pushing major tech companies toward Intel’s manufacturing facilities. President Trump and Commerce Secretary Howard Lutnick urged Apple CEO Tim Cook last year to use Intel’s fabs during talks over semiconductor import tariffs.
Apple later secured a tariff exemption after committing to expand U.S. investments. It is now planning to have Intel produce chips for select Mac and iPhone products, according to a person familiar with the negotiations cited by the Journal.
The government didn’t stop there. It converted $9 billion in federal grants into a 10% equity stake in Intel, making Washington the company’s largest shareholder. That level of direct government ownership in a U.S. tech firm is virtually without precedent.
Administration officials also encouraged Intel partnerships with Nvidia and Elon Musk’s SpaceX, and have stayed in regular contact with Intel executives to track the company’s progress and foundry expansion.
Beyond government backing, Tan has moved fast to reshape the company. He reorganized Intel’s engineering operations, brought in executives from Samsung and SK Hynix, and directed more capital toward manufacturing equipment to boost production of high-demand chips.
The restructuring appears to be delivering results. Intel reported a 22% year-over-year rise in first-quarter data centre revenue, hitting $5.1 billion on the back of strong demand for Xeon processors. The company still posted a quarterly net loss, but the direction of travel has shifted.
Google Cloud placed a large order for Intel’s Xeon CPUs, pointing to Tan’s leadership as a factor in the decision.
Intel has also attracted significant outside investment alongside government backing. Nvidia put $5 billion into the company, and SoftBank followed with $2 billion. That capital has allowed Intel to keep spending on manufacturing rather than cutting back.
The combination of customer commitments from Apple and Google Cloud, investment from Nvidia and SoftBank, and a government equity stake has changed the picture for Intel considerably over the past year.
Intel’s data centre revenue growth of 22% year-over-year to $5.1 billion in Q1 remains the most recent hard financial data point for the company’s recovery.
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