In August 2025, Washington agreed to invest $8.9 billion in Intel by purchasing 433.3 million shares at $20.47 each, equal to roughly 9.9% of the company. Intel said the position would be passive, with no board seat or normal governance rights.
With INTC closing at $121.78 after a 12.1% surge, that block of shares is now worth roughly $52.8 billion.
That implies an unrealized gain of about $43.9 billion, or roughly 495% above the government’s original purchase price.
Intel’s Rally Has Made the Stake Much More Valuable
The government position was funded using $5.7 billion in previously awarded CHIPS Act grants and another $3.2 billion from the Secure Enclave program.
At the time, the structure was unusual because federal support was converted directly into common equity rather than remaining purely grant-based.
The value of that stake has risen rapidly with Intel’s turnaround.
Coinpaper calculated the position at roughly $41.5 billion when INTC traded near $95.80. Just days later, another rally pushed the estimated stake value close to $45 billion.
At $121.78, the government’s paper gain has expanded by another several billion dollars.
Why Intel Is Rising
The latest jump is tied to renewed optimism around AI infrastructure and server demand.
Intel gained more than 12% during the latest semiconductor rally as investors reacted to stronger AI-related CPU demand. AMD, Nvidia and Arm also advanced, showing that the rally has broadened beyond GPUs.
That broader theme is consistent with the recent surge across AI chip stocks, as data-center spending expands across CPUs, accelerators, networking and memory.
Intel’s foundry turnaround remains another major factor. Its next-generation 14A process has shown improving defect metrics, although the division continues to generate significant losses.