Intel shares surge as U.S. government stake reaches $45B

Intel shares rose approximately 9% to 10% following reports that the company may increase PC CPU prices by another 10% in October. This pricing strategy appears aimed at improving gross margins rather than pursuing market share.

The stock rally has significantly increased the value of the United States government’s equity position in Intel. The government holds approximately 433.3 million shares, a stake acquired in August 2025 through the conversion of $5.7 billion in unpaid CHIPS Act grants and $3.2 billion from the Secure Enclave program. At recent trading prices near $103.60, the stake is valued at roughly $44.9 billion, representing an unrealized gain of approximately $36 billion from the original $8.9 billion investment.

Market analysts have noted the momentum, with Northland Securities upgrading the stock to Outperform and setting a $120 price target, citing material progress in Intel’s turnaround and tight supply in the server CPU market.