A government rescue of Intel is “essential” for U.S. national security, according to Gil Luria, head of technology research at D.A. Davidson, after reports that the Trump administration is considering taking a direct stake in the struggling chipmaker.
Bloomberg reported Thursday that the White House is weighing such a move, which sent Intel’s stock surging more than 6% on Friday and put it on track for its best week in over 25 years. Intel declined to comment.
Luria told CNBC’s Squawk Box that while he normally opposes government ownership of private companies, the stakes are different here. “We’re all capitalists… but this is national security,” he said, arguing that a deal could revive Intel and reduce U.S. reliance on foreign manufacturers like Samsung and Taiwan Semiconductor Manufacturing Co.
President Donald Trump has repeatedly called for more chips and advanced tech to be made in America. The administration is reportedly considering using CHIPS Act funds for the intervention. Intel has already received $7.9 billion from the Department of Commerce through the program, plus about $3 billion for the Pentagon’s Secure Enclave initiative.
“Intel has had many opportunities over decades to get it right, and it hasn’t,” Luria said. “If the government is going to give Intel unfair advantages, it will want a piece of the business.”
The potential stake talks come days after Intel CEO Lip-Bu Tan met Trump at the White House, following the president’s call for his resignation over alleged ties to China.
Luria also cited warnings from OpenAI’s Sam Altman and Meta’s Mark Zuckerberg, who have likened the rise of superintelligent AI to “the next wave of nuclear proliferation,” as another reason for direct government involvement.
“We can’t rely on someone else to make shell casings for our nuclear arsenal,” Luria said. “We have to get it right.”
