What Is Going On With Intel Stock On Tuesday?

Benzinga
2025.09.16 14:08
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Intel Corp is in the spotlight as the Trump administration plans to take a stake in the company to enhance its value, inspired by Taiwan Semiconductor's success. Despite Intel's resistance to the stake, the company is restructuring and has recently sold a majority stake in Altera. Intel shares have risen over 20% this year, but were down 0.22% at $24.71 on Tuesday. The stock trades within a 52-week range of $17.66 to $27.55, reflecting ongoing investor interest amid a challenging financial landscape.

President Donald Trump's administration plans to take a stake in Intel Corp INTC to help the key U.S. chipmaker unlock value. The administration aims to replicate the public-private model that fueled Taiwan Semiconductor Manufacturing Co's TSM success.

Intel and Taiwan Semiconductor traded higher on Monday, while Taiwan Semiconductor marked an all-time high, spurred by investor optimism amid an exciting earnings season.

Also Read: Intel Warns Of Potential Backlash After Securing $5.7 Billion US Bailout

The U.S. looks to Taiwan Semiconductor, the leading chip foundry, as a model, Nikkei Asia reported on Tuesday.

Taiwanese authorities helped establish the company, and a government-linked fund remains its largest shareholder. Intel resisted the U.S. government's stake.

The U.S. chipmaker remains engaged in other activities to boost value.

Intel closed its long-awaited deal to sell a majority stake in Altera to Silver Lake. Signed on April 14, 2025, the $3.3 billion transaction officially closed on Sept. 12, giving Silver Lake 51% ownership while Intel retained 49%.

Intel will include Altera's results through Sept. 11 in its third-quarter 2025 financials, then account for its stake using the equity method. Altera generated $816 million in revenue in the first half of 2025 with a 55% gross margin, and Intel cut its 2025 adjusted operating expense target to $16.8 billion to reflect Altera's deconsolidation, while keeping its 2026 target at $16 billion.

The divestiture coincided with Intel’s sweeping restructuring to manage financial strain. The company reported GAAP operating expenses of $21.9 billion for 2025 and projects $19 billion for 2026.

Intel shares gained over 20% year-to-date, amid reports indicating that the U.S. government has taken a 10% equity stake through the CHIPS Act. Taiwan Semiconductor gained 32% buoyed by the AI frenzy. Washington also secured a warrant to buy an additional 5% at $20 per share if Intel's foundry ownership dips below 51%.

Intel CFO David Zinsner said the government stake aims to preserve the loss-making foundry unit, which logged $3.1 billion in second-quarter losses. New CEO Lip-Bu Tan has begun cutting headcount to 75,000 and setting up a separate board for the foundry, while pursuing a major 14A process customer for 2026.

INTC Price Action: Intel shares were down 0.22% at $24.71 at the time of publication on Tuesday. The stock is trading within its 52-week range of $17.66 to $27.55, according to Benzinga Pro data.

  • Taiwan Semiconductor To Strengthen Chipmaking Network With Pingtung Service Hub

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