00:00 Speaker A
the Trump administration considering taking a stake in chipmaker Intel. This is going to bloomberg news. That deal would help shore up intel’s plan factory hub in Ohio, according to the report. Company had once promised to turn that site, remember, into the world’s largest chip making facility. It’s unclear the size of this potential stake the US would have, but the plans seem to have stemmed from a meeting this week, remember between President Trump and Intel’s chief executive officer. The ideas for the US government to pay for the stake, details being sorted out. Caleb, headlines coming fast and furious. The stock reacting about two percent in the after hours. What do you make of it?
01:05 Caleb
Yeah. Well, things have really changed for the Putan, the CEO of Intel because just a week, week and a half ago.
01:16 Speaker A
Trump was saying you’re out. He wanted his ouster. He called for his head. Yeah.
01:22 Caleb
Right. So this is administration getting very deep into the private sector into some of the most important companies in the market, doing some of the most important things. And the reality for Intel is they have the manufacturing base here more than any other chip maker in the US to produce a lot of chips. And if we’re going to become a chip producing nation, we’re going to need Intel. We’re going to need its foundry. We’re going to need all of its factories all over the southwest and everywhere else to make as many chips as possible. The fact that the US might take a stake, that’s an interesting conflict of interest, but everything is interesting these days with this administration.
02:22 Speaker A
You know, the reports saying this is fluid. It sounds like we don’t have a lot of details yet. So we’ll see how this all flushes out and works out. It is interesting though, Caleb, as a long time market watcher that you are, when we talk about Intel, and here you have this, this storied American company. But on this show, listen, we talk about Nvidia and AMD, and Broadcom, and Micron, and you name it. Intel is not discussed all that much. It is not in the bloodstream like it used to be.
03:21 Caleb
Because it missed arguably the AI chip making wave. It’s catching up to it, but it got, it missed the head start that Nvidia was on to, that AMD was on to, that a lot of these other chip makers have invested in tens and hundreds of billions of dollars over the last few years, and they’ve been rewarded for it. So it missed that. It’s losing a big customer in Apple who’s going to be making its own chips, and it lost its way arguably for a while. But it does have the infrastructure in place in this country to do a lot of chip manufacturing if it had the investment. So far, it doesn’t have any big customers for its foundry business, which it invested a lot of money, and that was supposed to be the future. Maybe this, if it’s true, turns things around a little bit, but we haven’t mentioned Intel in a while. We had mentioned Cisco in a while, and Cisco on the program earlier today. These are like partying, like it’s 1999 all over again.
04:35 Speaker A
It sounds like Intel’s declined comment on the discussions. Just sounds like the White House not immediately responding to request for comment either, but we’ll keep you posted on headlines as they come.
Intel, Josh Lipton
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