US Government Reportedly Won't Participate In INTC's First Stock Sale Since 1971

• The government’s decision not to participate comes as Intel moves ahead with its upsized $20 billion stock offering.
• The stock offering will dilute the government’s 9.9% stake in Intel since it is not participating in the raise.
• The U.S. government acquired a 9.9% stake in Intel in August 2025 as part of a deal aimed at strengthening domestic semiconductor manufacturing.

The U.S. government will not participate in Intel Corp.’s (INTC) first stock sale since the chipmaker went public in October 1971.

According to a Semafor report citing people familiar with the matter, U.S. Commerce Secretary Howard Lutnick approved Intel’s stock offering plan after CEO Lip-Bu Tan reached out to him last week.

Intel shares edged lower by 0.04% in Tuesday morning’s trade.

US Government Backs INTC Stock Sale Without Participating

The government’s decision not to participate comes as Intel moves ahead with its upsized $20 billion stock offering. The U.S. government acquired its 9.9% stake in Intel in August 2025 as part of a deal aimed at strengthening domestic semiconductor manufacturing.

The stock offering will dilute the government’s 9.9% stake in Intel since it is not participating in the raise. The chipmaker said the proceeds will be used for general corporate purposes, including potential capital expenditures and working capital. Semafor reported that the raise will help fund AI projects, including Intel’s delayed Ohio chip factory.

Since the U.S. government acquired 433.3 million shares in Intel at a purchase price of $20.47 apiece, the stock has soared 378% based on current levels.

INTC Upsizes Stock Offering To $20B

Intel has upsized its previously announced common stock offering to $20 billion from $15 billion, pricing 210.5 million shares at $95 apiece.

The chipmaker expects to raise approximately $19.7 billion in net proceeds, assuming the underwriters do not exercise their option to purchase an additional 31.6 million shares. The offering is expected to close on August 12, subject to customary conditions.

Intel added that customers continue to signal a “strong and sustainable demand environment” amid unprecedented investment in AI compute, highlighting physical AI, purpose-built silicon, advanced packaging and external wafers as key growth opportunities.

Intel added that the capital raise will support these growth opportunities while helping maintain a strong balance sheet and its commitment to an investment-grade credit rating.

Underwriters will also have a 30-day option to purchase up to an additional $3 billion worth of shares at the offering price, less underwriting discounts.

What Retail Traders Think Of INTC Stock

Retail sentiment on Stocktwits around Intel trended in the ‘bearish’ territory at the time of writing.

INTC stock is up 164% year-to-date and 372% over the past 12 months. The S&P 500 ETF (SPY) is up 21% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 25%.

The iShares Semiconductor ETF (SOXX) is up 120% during this period, while the VanEck Semiconductor ETF (SMH) is up 95%.

Also See: FRMI Stock Rips On $6.5B TensorWave Deal — Mizuho Says ‘Long-Awaited Catalyst’ Has Arrived

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