$124.92
24h
+13.96%
8 May, 18:06
Intel government equity stake gains 5x on Apple deal catalyst
Bullish+0.68%
AI Summary
The tweet describes how Trump's administration converted Intel CHIPS Act subsidies into equity at $20.47/share, now worth $125/share after Apple manufacturing deal, representing a 5x return in 8 months.
Everyone is saying Trump made hundreds of billions of dollars buying $INTC, but this money was originally subsidy funds allocated to Intel under the CHIPS Act during Biden's term.
What Trump did was convert the originally free $5.7 billion subsidy, plus $3.2 billion in security project funding, into 10% equity in Intel.
Purchase price: $20.47 per share.
Today Apple announced it would have Intel manufacture chips, and the stock price soared to $125. 433 million shares, book value exceeding $50 billion, 8 months, net profit over $40 billion.
How incredible is this move?
For comparison, during the 2008 financial crisis, the US government bailed out General Motors, struggled for five years, and ultimately lost over $10 billion.
But for this Intel deal, it increased 5-fold in 8 months.