Intel Shares Surge Following Trump Administration’s Push for Domestic Chip Production
Intel Corporation’s stock experienced a significant uptick this week, with shares rising 5% on Wednesday following a 6% gain on Tuesday. The surge comes in the wake of comments made by Vice President JD Vance emphasizing the Trump administration’s commitment to enhancing American chip production and building powerful AI systems within the United States.
The semiconductor giant has seen a remarkable 13% increase in its stock value this week, bucking the trend of declines observed in other chip manufacturers such as Nvidia and Broadcom. However, despite these recent gains, Intel’s stock remains down over 50% compared to the previous year, while competitor Nvidia has enjoyed an 82% increase during the same period.
At the 2025 Paris Artificial Intelligence Action Summit, Vice President Vance advocated for increased US-based chip manufacturing, stressing the importance of both American-designed and manufactured semiconductors. This stance aligns closely with Intel’s focus on onshoring semiconductor production, as evidenced by the company’s 2022 commitment of approximately $20 billion to construct new chip factories in Ohio and Arizona.
The Trump administration views domestic chip manufacturing as a crucial component of national strategy, particularly in the context of competition with China. Intel has already received nearly $8 billion from the CHIPS Act, signaling strong government support for its initiatives.
Analysts at JPMorgan interpret Vance’s comments as a positive indicator of Intel’s role in US geopolitical strategy. They anticipate continued and potentially increased government backing for Intel’s foundry initiative. Furthermore, the Trump administration may encourage partnerships with Intel Foundry as a strategy to strengthen the company’s position in the global semiconductor market.
As the semiconductor industry continues to evolve, Intel’s recent stock performance and the administration’s focus on domestic chip production highlight the growing intersection of technology, national security, and economic policy in the United States.
