Trump 'brags' after investment in Intel

President Donald Trump said the United States has earned tens of billions of dollars in profits after investing in Intel, a company that has been struggling and has had to restructure in recent times.

The US government and SoftBank own 10% of Intel's shares. Photo: Bloomberg .

Accordingly, at the end of August, the US government and SoftBank bought back about 10% of Intel's shares. At that time, Intel's market capitalization was only about 107 billion USD . To date, this number has increased to 181 billion USD , equivalent to an increase of about 73 billion USD , bringing great profits to both the company and the US government.

“I think America has made about $40 billion since I made that big deal. Intel came in and I said the government should own 10 percent of your company. And they did. Their stock went up, we made $30 billion, $40 billion , and they did a great job,” President Trump told Fox News .

When the deal was made, Intel stock was trading below book value, a sign that the company’s assets were worth more than its market capitalization. However, Intel was still struggling after consecutive quarters of losses and suffering from a tarnished reputation.

The chip giant has successfully capitalized on major trends such as 5G, cloud computing and high-performance computing (HPC). However, the company has been late to the AI ​​wave. However, the company still supplies a large number of CPUs to data centers and telecommunications infrastructure worldwide.

Intel is still the world’s largest CPU maker, despite losing market share to AMD. The company has been working to rebuild its operations, develop new manufacturing nodes for four years, and prepare for mass production of chips using the 18A process. Part of the production line has also been moved from TSMC to domestic factories.

Following the US government investment, Intel signed a strategic agreement with Nvidia, under which the company will supply CPUs for Nvidia's AI platforms and receive a 5% stake from this partner.

Analysts say Washington's support for Intel is not just financial, it is also strategic. This is the only US company capable of producing advanced logic chips, an important factor for the fields of AI, defense and national security.

Strengthening Intel's position is a move to ensure domestic chip manufacturing capacity, reduce dependence on TSMC and Samsung, and maintain America's technological advantage over China.

Source: https://znews.vn/ong-trump-khoe-loi-sau-khoan-dau-tu-vao-intel-post1596243.html