Intel $INTC ( ▲ 10.8% ) extended its strong start to 2026 on Friday, climbing sharply after President Trump posted a favorable message touting the company’s leadership and the government’s investment. Shares were up more than 10% in early trading, adding momentum to a rally that’s already been building this year.
The reaction highlights how closely Intel’s fortunes are now tied to Washington as it tries to revive its manufacturing ambitions.
Trump Steps In as Public Cheerleader
In a Truth Social post Thursday afternoon, Donald Trump praised Intel CEO Lip-Bu Tan, called the government’s 10% stake in the company a financial success, and reiterated his administration’s push to bring advanced chip manufacturing back to the U.S.
“Our Country is determined to bring leading edge Chip Manufacturing back to America, and that is exactly what is happening!!!” Trump wrote, striking an unusually bullish tone for a sitting president discussing a publicly traded company.
Why That Comment Matters for Intel
Beyond the headline-grabbing praise, Trump’s remarks touched on a critical issue for Intel’s future. The company’s next-generation foundry business depends on signing external customers willing to manufacture chips at Intel facilities, a key step in turning around its struggling contract manufacturing unit.
Intel’s ability to secure those deals is expected to be one of the biggest drivers of the stock this year, and government backing could help tip the scales.
Washington as a Strategic Advantage
It’s increasingly clear that having the U.S. government as a shareholder, and the president as an outspoken supporter, could be a meaningful asset. Trump has shown he’s willing to apply public and private pressure on companies to align with policy goals, which could help persuade hesitant customers to commit to Intel’s foundry roadmap.
That dynamic may not guarantee success, but it does give Intel a unique edge in an industry where scale, trust, and long-term commitments matter.
A Stock on a Roll
Intel shares are now up roughly 16% year to date and have more than doubled over the past year. While skepticism around execution remains, Friday’s move shows investors are increasingly willing to bet that political backing and strategic urgency could finally help Intel turn the corner.