U.S. Treasury’s Intel Stake Jumps $47.6B After Apple Deal
Intel shares hit a record after a preliminary Apple chip-manufacturing deal, raising the U.S. Treasury’s 9.9% stake by about $47.6 billion to $56.5 billion.
Intel shares hit a record on May 8 after a preliminary agreement for Intel to manufacture chips for Apple devices. The stock climbed about 18% intraday to roughly $129, driving Intel to an all-time high.
The rally raised the U.S. Treasury’s 9.9% stake in Intel from an $8.9 billion cost basis to a $56.5 billion valuation, an unrealized increase of about $47.6 billion. The holdings would only become realized gains if the Treasury sells shares.
The Treasury acquired 433.3 million Intel shares in August 2025 when unpaid federal funding was converted into stock at $20.47 per share. The conversion repurposed roughly $5.7 billion from CHIPS and Science Act grants and about $3.2 billion from the Defense Department’s Secure Enclave program. The Treasury holds the position as a passive investor and has no board seats. The equity-for-grants arrangement has drawn scrutiny in the Senate.
Apple has historically relied on Taiwan-based contract manufacturers for its custom chips; the preliminary agreement with Intel would mark a change for the company. Commerce Secretary Howard Lutnick met repeatedly with Apple CEO Tim Cook, and senior White House officials had encouraged closer ties between Apple and U.S.-based chipmakers. Former President Donald Trump described the earlier conversion as a win at the time, saying the United States “paid nothing” for the shares.
Intel has spent more than a year developing its foundry business and seeking anchor customers. Microsoft committed to Intel’s 18A process earlier this year. Intel reported strong trading momentum in April 2026, posting its best month with a 114% gain. The Apple arrangement would give Intel a major potential foundry client if finalized.
Analysts at the Kobeissi Letter wrote: “That’s a gain of +$47.6 BILLION in less than 8 months. Truly unprecedented.” The large paper gain highlights tensions between the policy goals behind the equity-for-grants structure and the possibility of sizable market returns.
The Apple-Intel agreement is preliminary and details remain to be finalized. The Treasury’s stake remains a passive holding whose ultimate disposition will depend on market conditions and political decisions about government-held equity.
