Intel Corporation delivered one of its most memorable days in recent memory on Friday, with shares surging 10% after CEO Lip-Bu Tan emerged from a White House meeting with President Donald Trump, carrying what amounts to a presidential endorsement of the company's ambitious domestic manufacturing strategy.

The Meeting That Moved Markets

The Thursday meeting at the White House between Tan and Trump was anything but ceremonial. The Intel chief presented the first production-ready wafers of the company's "Panther Lake" architecture—processors built using Intel's cutting-edge 18A manufacturing process—directly to the President.

"I just finished a great meeting with the very successful Intel CEO, Lip-Bu Tan," Trump wrote on Truth Social shortly after. "We made a GREAT Deal, and so did Intel. Our Country is determined to bring leading edge Chip Manufacturing back to America, and that is exactly what is happening!!"

The stock closed at $45.55 per share on Friday, marking a remarkable turnaround for a company that was trading near decade lows just months ago.

A Government Stake Worth Twice What It Was

Perhaps the most striking aspect of Friday's rally is what it means for U.S. taxpayers. The federal government currently holds an approximate 5.5% equity stake in Intel—the result of an $8.9 billion investment finalized in August 2025 as part of the CHIPS Act implementation.

That stake is now worth approximately $19.74 billion, effectively doubling the government's investment in less than six months. It represents one of the most successful government technology investments in recent history, rivaling the returns the Treasury saw from its financial crisis-era bank investments.

From Conflict to Collaboration

The warm embrace between Trump and Tan marks an almost unbelievable reversal from their relationship just months earlier. In mid-2025, before the government finalized its investment, Trump took to Truth Social to attack the Intel CEO directly.

"Lip-Bu Tan is highly CONFLICTED and must resign, immediately," Trump wrote at the time, citing concerns about Tan's previous business relationships in Asia.

What changed? Results. Tan, who took over as CEO in March 2025 after the ouster of Pat Gelsinger, moved quickly to stabilize Intel's manufacturing operations and accelerate the 18A process node that represents the company's best chance at regaining semiconductor leadership.

The 18A Breakthrough

At an industry conference earlier this week, Tan confirmed that Intel began shipping its first sub-2-nanometer 18A products on schedule at the end of 2025. The Core Ultra Series 3 processors are the first sub-2 nanometer chips to be designed, manufactured, and packaged entirely within U.S. borders.

This is precisely the outcome the CHIPS Act was designed to achieve—and it's happening faster than many skeptics predicted.

"This isn't just about Intel anymore. This is about whether the United States can build the most advanced semiconductors in the world on American soil. Today, we proved we can."

— Intel CEO Lip-Bu Tan, January 2026

Strategic Investors Pile In

The U.S. government isn't the only major investor betting on Intel's comeback. Nvidia Corporation and SoftBank Group have both acquired multibillion-dollar stakes in the company, signaling broad confidence in Tan's turnaround strategy.

For Nvidia, the investment is particularly notable given that the two companies are fierce competitors in the AI chip market. But Nvidia's stake is strategic—the company needs Intel's foundry services to diversify its manufacturing away from sole reliance on Taiwan Semiconductor Manufacturing Company.

What This Means for Investors

Intel's 10% single-day gain is impressive, but the stock is still trading well below its all-time highs from the early 2000s. Analysts remain divided on whether the company can truly challenge TSMC and Samsung for semiconductor manufacturing leadership.

However, Friday's developments suggest that Intel now has something it lacked for years: political capital. With a supportive administration, a massive government investment showing positive returns, and technical milestones being hit on schedule, the headwinds that battered Intel for the past decade are beginning to shift to tailwinds.

The road ahead remains challenging. Intel must continue executing on its manufacturing roadmap while managing a complex restructuring that has included thousands of layoffs. But for the first time in years, the company's supporters have reason for genuine optimism.

The Bigger Picture

Friday's Intel rally is about more than one company's stock price. It's a validation of the CHIPS Act's core premise: that strategic government investment can help rebuild America's semiconductor manufacturing capabilities.

With geopolitical tensions making Taiwan's semiconductor dominance an increasing national security concern, Intel's success—or failure—has implications that extend far beyond Wall Street. Friday's meeting between Tan and Trump suggests both sides understand the stakes.