<div id="readability-page-1"><div><div><p><strong>Intel Corp.</strong>‘s <span>INTC</span> stock has rewarded investors with a more than 20% gain year-to-date, but the U.S. government’s new equity stake in the chipmaker is prompting stark warnings from financial experts.</p><h2><strong>Could Intel’s Growth Stagnate As A Result Of The Government’s Stake?</strong></h2><p>Citing the aftermath of the 2008 global financial crisis (GFC), one analyst suggests the government’s involvement could spell a decade of stagnation for the company’s shares.</p><p><strong>Jamie Cox</strong>, Managing Partner for Harris Financial Group, drew a direct parallel to the government bailouts of major banks. “The U.S. took stakes in large banks during the global financial crisis, and the stocks were dead for 10 years,” Cox told Benzinga, adding that “caution is warranted for any company who cedes a stake to the government right now.”</p><h2><strong>Trump Administration Acquires 10% Stake In INTC</strong></h2><p>The controversial move saw the Donald Trump administration acquire a nearly 10% stake in Intel for $8.9 billion, using funds from the CHIPS and Science Act. </p><p>Top economic adviser <strong>Kevin Hassett </strong>has defended the investment in a conversation with CNBC, framing it as a “down payment on a sovereign wealth fund.” President Trump has also expressed enthusiasm, stating he hopes to have “many more cases like” the Intel deal. </p><h2><strong>Stake In INTC ‘Not Only Unconstitutional, It's A Bad Idea’</strong></h2><p>However, this new strategy of direct government intervention has sparked widespread criticism from free-market advocates. Economist Peter Schiff called the move a “terrible precedent” and a mistake that moves the nation “further away from free-market capitalism.”</p><p>In a social media post, Schiff argued, “The U.S. Govt. taking a 10% stake in $INTC is not only unconstitutional, it's a bad idea. Trump wasn't hired to run a hedge fund… Had Biden done this, Republicans would be livid.”</p><h2><strong>Intel Investment— An Abandonment Of Free Markets?</strong></h2><p>While the administration views these equity stakes as a new tool for economic policy, akin to tariffs, critics worry about the long-term consequences for the companies involved and the broader market.</p><p>Former Vice President <strong>Mike Pence</strong> has endorsed Republican strategist <strong>Marc Short</strong>‘s criticism of the Trump-led administration's stake in Intel, warning that the plan betrays the GOP’s free-market principles. </p><p>Pence reposted Short’s remarks on X, where he compared the move by Republicans to mimicking Iran, China, and Saudi Arabia, writing, “Well said @marcshort!” and highlighting his former aide’s statement: “This is not what Republicans stand for.”</p><h2><strong>Price Action</strong></h2><p>Intel’s shares closed 0.81% lower on Tuesday and rose 0.082% after hours. It was up 20.43% YTD and 21.33% over a year.</p><p><strong>Benzinga’s Edge Stock Rankings</strong> indicate that INTC maintains a stronger price trend in the short, medium, and long terms. However, the stock scores poorly on growth rankings. Additional performance details are available here.</p><p>The <strong>SPDR S&amp;P 500 ETF Trust</strong> <span>SPY</span> and <strong>Invesco QQQ Trust ETF</strong> <span>QQQ</span>, which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose on Tuesday. The SPY was up 0.42% at $645.16, while the QQQ also advanced 0.40% to $572.61, according to Benzinga Pro data.</p><p>On Wednesday, the futures of the S&amp;P 500, Dow Jones, and Nasdaq 100 indices were trading slightly higher.</p><ul> <li><strong>Mike Pence Slams Trump’s Intel Investment As Abandonment Of Free Markets, Draws Parallels With China, Russia And Iran</strong></li> </ul><p><strong><em>Disclaimer:</em></strong><em> This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.</em></p><p><em>Photo: Tada Images / Shutterstock</em></p></div></div></div>

INTC

<p>Intel Corp.'s stock has gained over 20% year-to-date, but experts warn that the U.S. government's new 10% equity stake could lead to stagnation, reminiscent of the 2008 financial crisis. Critics, including economist Peter Schiff and former Vice President Mike Pence, argue this move undermines free-market principles. The Trump administration's investment, framed as a sovereign wealth fund, has sparked controversy, with concerns about its long-term impact on the market. Despite the stock's recent performance, analysts advise caution regarding its future growth potential.</p>

- Intel Corp. has seen a year-to-date stock gain of over 20%, but the U.S. government's acquisition of a nearly 10% stake raises concerns among financial experts about potential stagnation.  
- Critics, including economist Peter Schiff and former Vice President Mike Pence, argue that this government intervention undermines free-market principles and could lead to negative long-term consequences for the company and the market.  
- Despite the controversy, Intel's stock remains strong in price trends, although it scores poorly on growth rankings.

INTC Stock Up Over 20% In 2025—But Headed For A Lost Decade? Expert Cites 2008 Crisis, Says 'Caution Is Warranted' As Trump Mulls Intel Stake