Donald Trump's relationship with Intel Corp (NASDAQ:INTC) has flipped almost overnight. After calling the chipmaker "a disaster" last year, the president is now touting it as a national champion -- right as the stock begins to claw its way back.
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Trump's Whiplash Turnaround
Trump's reversal highlights how quickly politics can shape investor sentiment. Once skeptical of Intel's ability to compete with Taiwan and South Korea, he is now openly cheering its rebound as central to America's tech ambitions.
Reports suggest the Trump administration is considering taking a roughly 10% stake in Intel by converting CHIPS Act grants into equity -- a move that would instantly make the U.S. government the company's largest shareholder. Such a step would mark a major vote of confidence in the chipmaker's strategic role.
At the same time, SoftBank has announced a $2 billion investment, reinforcing faith in Intel's U.S.-based manufacturing ambitions and underscoring the growing support behind its turnaround efforts.
Read Also: Intel Stock Jumps Over 5% After Hours As SoftBank Buys $2 Billion Stake, Trump Administration Weighs Investment
Tepper And Hedge Funds Had The Lead
David Tepper's Appaloosa Management was ahead of the curve, scooping up Intel shares in a new position initiated during the second quarter this year.
He's not alone -- while Appaloosa Management bought 8 million shares, Cliff Asness' AQR Capital increased its stake by over 210%, Ken Griffin's Citadel Advisors added 6.25 million shares and Jim Simons' Renaissance Technologies made a staggering 1,947% increase, acquiring 7.22 million shares.
Together, these moves suggest that some of Wall Street's smartest minds see Intel as a major turnaround play.
New Leadership, New Energy
But don't overlook the company's new leadership. CEO Lip-Bu Tan has been steering Intel through a critical restructuring phase since his appointment in March this year. From focusing on regaining market share to streamlining operations and boosting investor confidence, Tan has been reshaping Intel’s future.
His appointment appears to be resonating with both institutional and retail investors, contributing to the stock's momentum. In many ways, Tan's strategic vision may be the glue holding this rally together, alongside high-profile investments and government interest.
For U.S. investors, the takeaway is clear: Intel's rally isn't a fluke. It's a combination of government backing, marquee hedge fund bets, strategic corporate leadership and significant foreign investment. Whether it's Trump, Tepper, SoftBank or Tan himself, the common denominator is confidence in Intel's ability to execute its turnaround plan.
If history is any guide, Intel may just be one of 2025's most watched comeback stories -- one where smart money and strong leadership converge.
Read Next:
- Intel’s White House Advantage: The Only Chip Giant Not Paying The China Tax
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