Apple-Intel Deal Lifts U.S. Intel Stake by $47.6 Billion

A preliminary agreement for Intel to manufacture chips for Apple pushed Intel shares to an all-time high on May 8, rising roughly 18% intraday to about $129. The move raised the U.S. government’s roughly 9.9% stake in Intel from $8.9 billion to approximately $56.5 billion, an unrealized gain of about $47.6 billion.

The Treasury acquired the position in August 2025 by converting unpaid federal funding into 433.3 million Intel shares at approximately $20.47 per share. The conversion redirected $5.7 billion from CHIPS and Science Act grants and $3.2 billion from a Defense Department Secure Enclave program into equity. The stake is held as a passive investment without board representation.

The preliminary Apple-Intel agreement would mark the first time Apple has contracted Intel to manufacture production silicon for its devices; Apple has previously relied on other contract chipmakers. Commerce Department officials met repeatedly with Apple executives over the past year to encourage greater U.S.-based chip production, and senior administration figures publicly backed the arrangement.

Market observers noted the size of the paper gain. Analysts described the increase in the Treasury stake’s market value as roughly $47.6 billion in under eight months. At the time of the equity conversion last year, the president wrote on Truth Social that “The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL.”

Intel’s foundry business has been seeking anchor customers as it expands outsourced manufacturing. Microsoft agreed earlier this year to use Intel’s advanced 18A process. Intel reported a strong month in April 2026, when its shares rose about 114% for the month. The Apple agreement, while preliminary, would provide another major client for Intel’s foundry roadmap.

The gain for the government’s stake is unrealized. Any decision to sell shares will depend on market conditions and on political appetite for converting an industrial-policy investment into realized gains. The structure that converted federal grants into equity has drawn scrutiny from the Senate, which has opened inquiries into the arrangement and its financial implications.

For now, the immediate effect is a larger paper valuation for the Treasury’s position. The longer-term outcome will depend on whether the Apple-Intel preliminary agreement becomes a firm contract and on future decisions by policymakers about the federal stake.