U.S. 10% Intel stake gains about $28 billion after rally

The U.S. government’s 10% holding in Intel has added roughly $28 billion in paper value after Intel shares surged to an intraday peak of $85.22. The stake was acquired on Aug. 22, 2025, at $20.47 a share, a position then worth about $8.9 billion. The current increase represents an estimated 315% gain from the purchase price.

Intel shares rose 28% on Friday to the record intraday price, marking the company’s strongest one-day rise since Oct. 29, 1987. The rally pushed Intel’s year-to-date gain to about 120% and moved the share price above levels seen during the dot-com era.

Traders pointed to a stronger-than-expected quarterly report and an upbeat revenue outlook as the main catalysts for the rally. Intel reported quarterly revenue of $13.58 billion, above analyst expectations near $12.42 billion, and earnings per share of $0.29 versus a $0.01 estimate. Revenue increased 7.2% from $12.67 billion a year earlier. For the next quarter, Intel provided revenue guidance of $13.8 billion to $14.8 billion, above consensus forecasts near $13 billion.

Intel cited growth in its Data Center and AI businesses. Market interest intensified after major customers selected Intel’s 14A process for an AI chip project, creating an early external customer for a future manufacturing node. Intel’s planned expansion of foundry capacity remains costly and represents a significant financial variable for the company.

The rally affected the wider semiconductor sector. The Philadelphia Semiconductor Index rose 3.2% to a record, leaving the group up roughly 47% this year. Market data show the semiconductor group is on track for unusually strong first-quarter earnings growth versus the broader information technology sector. Several chip stocks posted double-digit gains on the day, with some suppliers rising more than 10% and others higher.

The government’s stake remains an unrealized paper gain until any shares are sold. Investors and market watchers will follow Intel’s ability to convert higher revenue and demand for AI-related products into sustained profit growth and free cash flow, and will track the progress and costs of the company’s foundry expansion and next-generation process nodes.