Intel stock rallies as Trump confirms a 10% US government stake, sparking debate over state capitalism, reshoring benefits, and long-term risks for investors.

Intel shares were up about 6% on the day, adding to earlier gains after reports that President Trump is set to announce the U.S. government is taking a nearly 10% stake in troubled chipmaker. The investment would cap a two-week frenzy in Washington over the future of the company.

The exact details of the arrangement are still unclear, but U.S. Commerce Secretary Howard Lutnick said on Tuesday the government continued to work on the possibility of taking a 10% stake in Intel. The White House did not immediately respond to a Reuters request for comment while Intel declined to comment.