U.S. government Intel investment sees massive gains amid inflation concerns

The U.S. government has seen significant returns on its direct equity investments in public companies, a signature policy of the Trump administration. A notable example is the investment in chipmaker Intel. By converting $5.7 billion in unpaid CHIPS Act grants and $3.2 billion in Secure Enclave program grants into a direct purchase of newly issued shares, the government acquired a 9.9% stake in the company. At the time of the deal in August 2025, the government acquired shares at $20.47 per share; with Intel recently trading above $101, the value of the investment has grown by approximately 395%.

Meanwhile, economic pressures including inflation and geopolitical tensions are impacting market stability. Analysts suggest that policies such as sweeping global tariffs and energy price increases stemming from conflict in Iran are contributing to rising inflation. These factors have increased the likelihood of the Federal Reserve implementing interest rate hikes, which could potentially challenge the current bull market.