Charles’ Note: Not long ago, the company we’re talking about today was the pride of American innovation. It was to the 1990s internet boom what Nvidia is today to the AI revolution.
But today, it’s barely relevant. Its share price is still below its highs from 25 years ago. Profits have cratered.
And yet…
Uncle Sam just bought a 10% stake in the struggling tech company.
Why?
I’ll turn to Freeport Society Cofounder and legendary investor Louis Navellier for the answer.
This isn’t a bailout out of a fallen giant. It’s much bigger – and has huge implications for your portfolio.
Below, Louis explains why the Trump administration is getting into bed with private tech leaders… why this is just the beginning… and how investors could potentially ride this trend to massive profits, with a key catalyst date of September 30 rapidly approaching.
Uncle Sam has deeper pockets than you or me. So, when he starts putting billions directly into the stock market, you don’t want to be on the sidelines.
Have a wonderful Labor Day weekend.
Take it from here, Louis!
From MP Materials to Intel… Who’s Next?
By Louis Navellier, Senior Investment Analyst, InvestorPlace
In a moment, you’ll see a chart.
It’s one of the most depressing charts you’ll ever come across in finance.
It shows the stock price of a once-great American company. A blue-chip icon. A testament to American “greatness.”
Yet its stock has gone nowhere over the past 10 years.
I’m talking about Intel (INTC).
What makes this even harder to stomach is that all of Intel’s missteps happened during the early stages of the AI Boom.
Competitors like Nvidia (NVDA) came along and revolutionized the semiconductor industry. They became the clear-cut leaders of the AI Revolution. Meanwhile, Intel just couldn’t seem to figure it out.
There’s so much unfavorable news about Intel that it’s hard to even know where to start.
Let’s just consider the past year…
- In August 2024, Intel announced plans to slash its headcount by more than 15% as part of a $10 billion cost-savings plan for 2025 – a move that could eliminate nearly 19,000 jobs.
- Around the same time, Intel suspended its dividend, cutting off income-focused investors from even a modest payout.
- Then in December, CEO Pat Gelsinger abruptly retired after failing to turn things around, leaving the company without a clear succession plan.
The financials tell the same story.
Last year, Intel lost $0.13 per share on $53.1 billion in revenue.
Back in 2021, it earned $4.86 per share on $79 billion in revenue. That’s how far the mighty have fallen.
But things may be starting to look up. Analysts expect a return to profitability this year. But even then, Intel is only projected to earn $0.12 per share on $52 billion in revenue.
By comparison, Nvidia is expected to grow earnings 46% on $203 billion in revenue – a 56% revenue surge. And over the past five years alone, the stock is up nearly 1,300%.
Now the U.S. government has made a bold move: It took a 10% stake in Intel.
That raises an important question…
Why in the world would Washington want to invest in a company with so many struggles?
That’s exactly what we’ll discuss today.
Because this isn’t the first move the U.S. government has made like this – nor will it be the last.
Let’s dig into what the Trump administration might do next – and how investors like you can profit…
Why Washington Chose Intel
Why would the U.S. government take a 10% stake in Intel?
The short answer: Because, despite all its woes, Intel is still the only American company capable of making advanced chips at scale on U.S. soil.
Last week, Commerce Secretary Howard Lutnick confirmed the government invested $8.9 billion into Intel common stock. That gave the U.S. a 10% stake in the company at a discount to the market price – now valued at roughly $11 billion.
The funds came from CHIPS Act grants and secure-chip awards that had already been approved but not yet paid out.
The government also secured a warrant to buy another 5% stake if Intel ever loses majority control of its foundry business.
Make no mistake, this is about more than shoring up a troubled stock. This is about national security.
Intel has spent billions building new factories in Ohio – what it calls the “Silicon Heartland” – in a bid to regain ground against Taiwan Semiconductor (TSMC). But the company has repeatedly run into delays and cost overruns.
Just last month, new Intel CEO Lip-Bu Tan told employees there would be “no more blank checks.” Intel’s crown jewel factory in Ohio isn’t scheduled to start production until 2030.
Meanwhile, TSMC continues to dominate global chip manufacturing, producing the most advanced semiconductors for Nvidia, Apple (AAPL), Advanced Micro Devices (AMD), Qualcomm (QCOM)… and even Intel itself.
That’s not just disappointing. It’s a serious strategic concern.
The West remains heavily reliant on Taiwan, which produces more than 60% of the world’s semiconductors and nearly 90% of advanced chips. If China ever made good on its threats to invade Taiwan, the risks to our supply chain would be catastrophic.
(Taiwan Semiconductor, for its part, understands this – which is why it’s building new chip foundries in Arizona and elsewhere overseas.)
By taking a stake in Intel, the U.S. government is signaling that it won’t allow the country to depend on one small island within striking distance of our biggest adversary for the chips that power everything from iPhones to AI data centers to missile guidance systems.
President Donald Trump called it “a great deal for America and a great deal for Intel.”
White House economic advisor Kevin Hassett went even further, saying this is likely the first of many such deals.
This is industrial policy on steroids, folks – and Intel is just the beginning. In fact, it’s not even the first move…
The First Move: MP Materials
Back in July, the government made a move into MP Materials (MP), the only U.S. company mining and processing rare-earth minerals at scale.
These metals are absolutely critical to everything from missile guidance systems to EV motors to the permanent magnets used in advanced semiconductors.
In fact, at a special investment briefing before this news, I told folks about MP as a “hidden AI trade”. The next day, this news broke, and the stock promptly doubled in less than a week.
That’s the kind of impact direct government support can have.
Why MP Materials?
For the same reason Washington just bought a piece of Intel: National security.
Rare earths are a choke point where China dominates. And just like with semiconductors, the U.S. government has no intention of letting a strategic adversary control the materials needed for our defense systems and next-generation technologies.
The MP Materials stake was a clear warning shot. It showed the Trump administration was willing to move beyond grants and subsidies. They’re willing to take actual equity stakes in companies if that’s what it takes to protect America’s supply chains.
Intel is simply the next link in the chain.
And it won’t be the last…
The Next Link: Defense Contractors
Intel wasn’t the only name in the headlines this week. Howard Lutnick said on CNBC that the Pentagon is weighing equity stakes in defense contractors like Lockheed Martin (LMT).
Think about what that means…
Washington isn’t just handing out contracts anymore – it’s talking about owning a piece of the very companies that build our fighter jets, missile systems, and next-generation drones.
Why? Again, because national security depends on it.
Lockheed and its peers are the backbone of America’s military supply chain. But costs are rising, projects are getting more complex, and the geopolitical backdrop is more dangerous than it has been in decades.
The Trump administration wants to make sure these firms have the resources to scale up quickly. It doesn’t want to leave that mission in the hands of Wall Street alone.
In other words, Washington is moving from regulator to shareholder.
That’s a sea change in U.S. industrial policy.
First MP Materials.
Then Intel.
Now the defense sector.
For investors, the message is clear: The government isn’t just influencing markets from the sidelines anymore. It’s stepping directly onto the field.
What This Means for Investors
Taken together, these moves form a clear pattern.
With every executive order, every tariff, and every proclamation and tweet, President Trump has been setting the stage for the most high-stakes moment of his second term.
The administration is pulling out all the stops to unleash what it calls a “stock market boom like the world has never seen.”
Come September 30, I believe President Trump will hold a “big reveal” that will drive $7 trillion – right off the sidelines – and into a handful of select stocks.
In fact, my system has helped me identify five under-the-radar companies I believe could surge 1,000% in the September 30 aftermath.
Because they’re smaller names – that most investors haven’t heard about – I believe their stocks could skyrocket as the money starts flowing… just like it did with MP Materials.
The last time I gave out a free pick, it doubled within a week.
Disclosure: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth above:
Nvidia (NVDA)