Intel shares jump nearly 9% premarket, lifting Nasdaq after a U.S. government stake surges over 500% to $56.76 billion.
The Nasdaq index erased yesterday’s losses in premarket trading, rising about 500 points as chip stocks led gains. Intel shares surged 8.77% to $131.70, nearing its all-time high of $132.75, after reports of a deal with Apple and optimism around AI and semiconductor policy.
The U.S. government’s stake in Intel, acquired via the CHIPS Act at an average cost of $20.47 per share, is now worth $56.76 billion. The 433.3 million shares represent an unrealized gain of $47.89 billion, a 540% return. The Dow and S&P also advanced, up 253 and 67 points, respectively, though lagging the Nasdaq’s rebound.
Investors are reacting to Intel’s strategic positioning in advanced manufacturing and AI chips, alongside broader market recovery after yesterday’s Fed-driven selloff.