Former Intel CEO Pat Gelsinger Slams CHIPS Act Rollout, Says Trump Administration's Stake Only Matters If It Builds And Fills Fabs

Former Intel Corp (NASDAQ:INTC) CEO and current Playground Global general partner Pat Gelsinger criticized the slow rollout of the CHIPS Act, arguing that the U.S. government's new stake in Intel only matters if it results in more semiconductor fabs being built and filled across America.

Ex-Intel CEO Gelsinger Says The Metric Is ‘Build'

Speaking Monday on CNBC's Squawk Box, Gelsinger defended the Donald Trump government's equity stake in Intel but said the ultimate measure of success will be whether the investment actually leads to expanded domestic chip manufacturing.

"To me, the only metric that matters is: does it cause the building and filling of Intel fabs?" he said. "If it causes more fabs to be built, more fabs to be filled in the U.S., then it's good. If that doesn't occur, then it's not right."

Gelsinger acknowledged that the market reacted positively to the government's investment, which totals about $11.1 billion in Intel's common shares when combined with previously awarded grants.

Still, he stressed that "none of those [other investments] have yet included a commitment to fill the Intel fabs."

Frustration With CHIPS Act Delays

The former CEO said the CHIPS Act, first introduced under the Trump administration, was meant to drive semiconductor independence but became bogged down under Commerce Secretary Gina Raimondo's leadership.

"I was super disappointed that Gina and the Department of Commerce took so long to get the money deployed … two and a half years, critical years, nothing happened. So I was quite disappointed. And for them to come in and say that was broken, we’re going to fix it in a very different way," Gelsinger said.

Intel's Struggles And Nvidia's Surge

Gelsinger also reflected on Intel's five-year performance, noting the company's shares have risen 58.79% in the past year but remain down more than 31% over five years.

He blamed long-term structural issues and Intel's failure to keep pace with the AI revolution.

"Intel made a set of bad decisions over 15 years," he said. "[We] lost technical leadership, wasn't led by technologists for many years and we were late on AI as well."

He praised Intel's 18A process milestone but acknowledged that Nvidia Corp. (NASDAQ:NVDA) has captured nearly all the incremental AI data center revenue.

"We need leading R&D. We need leading manufacture at scale in the US for our supply chains," Gelsinger said.

Analyst Concerns Ahead Of Earnings

Ahead of Intel's upcoming earnings report, Bank of America's Vivek Arya downgraded the stock to Underperform with a $34 price target, citing ongoing weakness in Intel's AI and server CPU businesses despite its strong balance sheet.

Arya said Intel lacks a competitive AI portfolio and faces limited flexibility to divest unprofitable operations, though he noted that partnerships with Nvidia and potential U.S. funding could offer upside catalysts.

Price Action: Intel shares rose 2.45% Monday but and increased more than 84% year to date, according to Benzinga Pro.

Intel ranks near the top in Benzinga's Edge Stock Rankings for Momentum, showing robust price performance over short, medium and long-term periods. A complete analysis, including how it stacks up against peers and competitors, is available here.

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