Intel shares rose by 2.5% to reach $102.84 following President Donald Trump's commitment to provide a $5,000 payment to American adults. The government acquired its stake of 433.3 million shares last year at a price of $20.47 per share, totaling an investment of $8.9 billion.
Commerce Secretary Howard Lutnick stated that the proposed payments would be funded by investment gains rather than tax revenue. He highlighted the government's Intel holdings, which have appreciated to approximately $44.6 billion, representing a gain of nearly $36 billion.
Independent estimates suggest the total cost of the proposed dividend program would reach $1.2 trillion, covering approximately 240 million adult citizens. The current value of the government's Intel position accounts for roughly 4% of the total required funding.
The government currently holds a 9.9% stake in Intel. Officials have noted that these shares remain unsold, and market analysts suggest that liquidating such a large block could negatively impact the stock price. Other administration members have proposed alternative funding sources, including tariffs and budget reconciliation.
