KEY POINTS
- Semiconductor stocks gained Friday after US President Donald Trump publicly praised Intel and its CEO, sparking positive sentiment in the chip sector.
- Intel shares surged in pre market trading, with other chipmakers, including AMD, Broadcom, and Micron, also showing modest gains.
- Government ownership drives market attention, highlighting policy influence on strategic technology sectors.
WASHINGTON — Semiconductor stocks climbed Friday after US President Donald Trump publicly commended Intel Corp. and its Chief Executive Officer, Lip-Bu Tan, signaling renewed market confidence in the American chip sector.
The remarks came as the US government holds a substantial stake in Intel under the CHIPS and Science Act.
Intel shares rose approximately 2 percent in extended trading Thursday and were up 2.46 percent in early pre market trading Friday following Trump’s posts on Truth Social.
Other chipmakers also benefited, Broadcom increased 0.49 percent, Micron 0.9 percent, and AMD 0.32 percent in pre market activity.
Trump emphasized the US government’s role as a shareholder, writing that the nation has earned “tens of billions of dollars” from its Intel investment in just four months.
The federal government acquired roughly 10 percent of Intel through an $8.9 billion investment, giving it a controlling interest in the company.
The investment aligns with broader efforts to expand domestic semiconductor manufacturing amid global supply chain concerns and rising demand for advanced chips.
Particularly those used in artificial intelligence and high performance computing. Intel’s stock has risen roughly 75 percent since the government announced its stake in 2025.
The positive sentiment extended beyond US markets. European semiconductor equipment makers ASML Holding and ASM International rose 4.74 percent and 3.47 percent, respectively.
Analysts note that optimism about US based chip manufacturing is influencing global equipment and AI related stocks.
“Policy decisions and public endorsements can create significant short term momentum in the semiconductor sector,” said Laura Chen, senior analyst at Global Tech Insights.
“Intel’s government backed position is sending a clear signal to investors about the strategic importance of domestic chip production.”
Michael Rivera, chief strategist at Meridian Capital Advisors, added, “While market reactions are positive, investors still need to weigh long term fundamentals.
Global competition and operational challenges remain key factors for Intel and its peers.”
Analysts emphasize that monitoring semiconductor capital expenditures, global demand, and policy developments will be critical for evaluating the sustainability of current market trends.
Short term optimism is driven by political endorsements and government support, but structural challenges and competition continue to influence long term performance.
Semiconductor stocks remain central to both economic and technological strategy, with Intel’s recent trajectory highlighting the growing intersection of government policy and market dynamics.
Author’s Perspective
In my analysis, the US government’s stake in Intel and Trump’s endorsement highlight a strategic push to secure domestic semiconductor production and AI capable chip supply, signaling strong policy driven market influence.
I predict the US will formalize a national semiconductor initiative, boosting domestic chip manufacturing and giving US companies a competitive edge in AI and advanced computing hardware.
For everyday users, this could mean more reliable access to AI powered devices and potentially lower prices for consumer electronics.
Monitor Intel’s domestic fab expansions and CHIPS Act partnerships to identify early investment and tech adoption opportunities.
NOTE! This report was compiled from multiple reliable sources, including official statements, press releases, and verified media coverage.
