Intel stock rose 3% after President Trump announced a deal for the US government to take a 9.9% stake in the company. Trump praised the deal on Truth Social, stating the government paid nothing for the stake. The government’s investment in Intel now totals $11.1 billion, including a $2.2 billion grant.

The administration plans to make similar investments in various industries, according to Kevin Hassett, the director of the National Economic Council. Trump aims to build a sovereign wealth fund for the US, signaling potential future transactions. Intel shares initially rose 5% on news of the deal, then fell 1.5% after the details were disclosed.

Intel CEO Lip-Bu Tan expressed gratitude for the government’s confidence in the company’s technology and manufacturing capabilities. The focus on US chip manufacturing is seen as a positive step for the industry’s economic and national security. Trump’s support is driving significant investments in Intel, boosting the country’s technology and manufacturing leadership.

Read more at Yahoo Finance: Dow, S&P 500, Nasdaq slip after record-setting surge as Nvidia earnings loom