Intel Corp. (INTC) shares climbed Friday as President Donald Trump delivered an unexpected endorsement of the chipmaker and its CEO, Lip-Bu Tan, breathing fresh momentum into the company's high-stakes turnaround effort. The public show of support underscores Washington's commitment to bringing cutting-edge semiconductor manufacturing back to American soil.

Trump took to Truth Social after a White House meeting to declare he had "just finished a great meeting with the very successful Intel CEO, Lip-Bu Tan." He framed the government's investment in Intel as a win for U.S. taxpayers, positioning the stake as central to the administration's push to reshore advanced chipmaking capabilities.

Uncle Sam Takes a Seat at the Table

The federal government first invested in Intel last August, putting $8.9 billion into the company through CHIPS Act grants and manufacturing awards. That timing turned out to be fortuitous. Intel shares have surged more than 70% since then, substantially boosting the value of the government's position.

The U.S. currently holds about 5.5% of Intel, and provisions in the deal could push that stake closer to 10% down the road. Trump claimed the investment has already generated "Tens of Billions of Dollars for the American People," though Bloomberg noted the actual realized gains fall well short of that figure. Still, the direction of travel looks promising for a government investment in a company that's been struggling to keep pace with rivals.

A Remarkable About-Face

Trump's praise represents a dramatic reversal from his stance just months ago. Last year, he called for Tan to resign after Senator Tom Cotton raised concerns about the CEO's extensive investments in Chinese technology companies. Tan, who was born in Malaysia and raised in Singapore, has invested in more than 600 Chinese firms over his career.

But that controversy now appears to be in the rearview mirror. Tan took the helm in March, replacing Pat Gelsinger as Intel hemorrhaged market share to competitors including Advanced Micro Devices, Inc. (AMD), Nvidia Corporation (NVDA), and a wave of Arm-based chipmakers.

Swift Moves to Stabilize the Ship

Since becoming CEO, Tan has moved aggressively to steady Intel's wobbling business. He's cut thousands of jobs and scaled back ambitious manufacturing expansion plans in both the U.S. and Europe. The company's massive Ohio fabrication plant, once expected sooner, now has a target launch date around 2030 or 2031.

At CES this week, Intel announced its 18A PC chips are now available, describing them as the most advanced process technology ever manufactured in the United States. Trump seized on this milestone, calling it the first "sub-2 nanometer CPU processor designed, built, and packaged" domestically. It's the kind of achievement that validates the billions in CHIPS Act funding, even if Intel still relies on Taiwan Semiconductor Manufacturing Co. for some production needs.

Recent investments from Softbank Group Corp. (SFTBY) and Nvidia have added fuel to investor optimism, suggesting industry players see potential in Intel's comeback story.

Can Intel Actually Win Back Market Share?

The big question hanging over everything is whether Intel's new products can actually reclaim territory lost to AMD, Nvidia, and others. Tan said this week that Intel began shipping its first sub-2-nanometer 18A products on schedule at the end of 2025, hitting a critical milestone. But shipping products and winning back customers are two different challenges.

Analysts remain watchful, looking for concrete signs that Intel can translate technological achievements into competitive gains. The company needs to prove it can execute consistently after years of stumbles and delays that opened the door for rivals to grab share.

INTC Price Action: Intel shares were up 2.48% at $42.13 during premarket trading on Friday. The stock is approaching its 52-week high of $44.57.