Right here’s how one can revenue as Washington turns right into a shareholder.
Washington Simply Purchased a Piece of an American Icon – Right here’s What’s Coming Subsequent…
Not way back, Intel was the pleasure of American innovation – a blue-chip inventory that traders may rely on.
Immediately, it’s a shadow of its former self. Shares have gone nowhere for a decade. Dividends have been lower. Earnings have cratered. And but…
The U.S. authorities underneath President Trump’s directive simply purchased a ten% stake within the struggling chipmaker.
Why?
In in the present day’s Digest, we flip it over to legendary investor Louis Navellier for the reply.
Trace: It’s not about bailing out a fallen large. It’s about one thing a lot larger – with big implications on your portfolio.
Beneath, Louis explains why Trump is entering into mattress with personal tech leaders… why Intel is only the start… and how investors could potentially ride this trend to massive profits, with a key catalyst date of September 30 quickly approaching.
Backside line: When the federal government begins placing billions straight into the inventory market, you don’t need to be on the sidelines.
Sufficient introduction. Right here’s Louis to fill in all the small print.
Have an exquisite Labor Day weekend,
Jeff Remsburg
In only a second, I’m going to point out you a chart.
It’s one of the miserable charts you’ll ever come throughout in finance.
It reveals the inventory value of a once-great American firm. A blue-chip icon. A testomony to American “greatness.”
The one downside? Its inventory has gone nowhere over the previous 10 years.
I’m speaking about Intel Company (INTC).
What makes this even tougher to abdomen is that each one of Intel’s missteps occurred throughout the exact same interval when the AI Increase took off.
Rivals like NVIDIA Company (NVDA) got here alongside and revolutionized the semiconductor business. They grew to become the clear-cut chief of the AI Revolution. In the meantime, Intel simply couldn’t appear to determine it out.
There’s a lot unfavorable information about Intel that it’s arduous to even know the place to start out.
Let’s simply contemplate the previous yr.
In August 2024, Intel introduced plans to slash its headcount by greater than 15% as a part of a $10 billion cost-savings plan for 2025 – a transfer that would remove practically 19,000 jobs. Across the similar time, Intel suspended its dividend, reducing off income-focused traders from even a modest payout. Then in December, CEO Pat Gelsinger abruptly retired after failing to show issues round, leaving the corporate with out a clear succession plan.
The financials inform the identical story. Final yr, Intel misplaced $0.13 per share on $53.1 billion in income. Again in 2021, it earned $4.86 per share on $79 billion in income. That’s how far the mighty have fallen.
Now, issues could also be beginning to search for – analysts count on a return to profitability this yr. However even then, Intel is simply projected to earn $0.12 per share on $52 billion in income. By comparability, NVIDIA is anticipated to develop earnings 46% on $203 billion in income – a 56% income surge. And over the previous 5 years alone, the inventory is up practically 1,300%.
Don’t get the unsuitable impression. I’m not attempting to denigrate Intel or its shareholders. They’ve suffered sufficient already.
And but, regardless of all this, the U.S. authorities simply made a daring transfer: it took a ten% stake in Intel.
That raises an essential query…
Why on the earth would Washington need to put money into an organization with so many struggles?
That’s precisely what we’ll talk about in the present day. As a result of this isn’t the primary transfer the U.S. authorities has made like this – nor will it’s the final. So, we’ll go over what occurred, what the Trump administration would possibly do subsequent – and the way traders can revenue.
Why Washington Selected Intel
So why would the U.S. authorities step in and take a ten% stake in Intel – an organization that has misplaced floor and stumbled within the chip race?
The quick reply: As a result of regardless of all its woes, Intel remains to be the one American firm able to making superior chips at scale on U.S. soil.
Final week, Commerce Secretary Howard Lutnick confirmed the federal government invested $8.9 billion into Intel frequent inventory. That gave the U.S. a ten% stake within the firm at a reduction to the market value – now valued at roughly $11 billion. The funds got here from CHIPS Act grants and secure-chip awards that had already been authorised however not but paid out. The federal government additionally secured a warrant to purchase one other 5% stake if Intel ever loses majority management of its foundry enterprise.
Make no mistake, that is about greater than shoring up a troubled inventory. That is about nationwide safety.
Intel has spent billions constructing new factories in Ohio – what it calls the “Silicon Heartland” – in a bid to regain floor towards Taiwan Semiconductor Manufacturing (TSMC). However the firm has repeatedly run into delays and price overruns. Simply final month, new CEO Lip-Bu Tan instructed workers there can be “no extra clean checks.” Intel’s crown jewel manufacturing unit in Ohio isn’t scheduled to start out manufacturing till 2030.
In the meantime, TSMC continues to dominate world chip manufacturing, producing probably the most superior semiconductors for Apple Inc. (AAPL), NVIDIA, Superior Micro Gadgets Inc. (AMD), Qualcomm Inc. (QCOM) – and even Intel itself.
That’s not simply disappointing – it’s a severe strategic concern. The West stays closely reliant on Taiwan, which produces greater than 60% of the world’s semiconductors and practically 90% of superior chips. If China ever made good on its threats to invade Taiwan, the dangers to our provide chain can be catastrophic. (TSMC, for its half, understands this – which is why it’s constructing new chip foundries abroad.)
By taking a stake in Intel, the U.S. authorities is signaling it gained’t enable the nation to rely upon one small island inside hanging distance of our greatest adversary for the chips that energy all the things from iPhones to AI information facilities to missile steerage programs.
President Trump referred to as it “an incredible deal for America and an incredible deal for Intel.”
White Home financial advisor Kevin Hassett went even additional, saying that is seemingly the primary of many such offers.
That is industrial coverage on steroids, of us – and Intel is only the start. In truth, it’s not even the primary transfer…
The First Transfer: MP Supplies
You see, this isn’t the primary time Washington has put actual cash to work in a strategic firm.
Again in July, the federal government made a transfer into MP Supplies Corp (MP), the one U.S. firm mining and processing uncommon earth minerals at scale.
These metals are completely crucial to all the things from missile steerage programs to EV motors to the everlasting magnets utilized in superior semiconductors.
In truth, at a particular funding briefing earlier than this information, I instructed of us about MP as a “hidden AI trade”. The following day, this information broke, and the inventory promptly doubled in lower than per week. That’s the form of influence direct authorities help can have.
Why MP Supplies? For a similar motive Washington simply purchased a bit of Intel: nationwide safety.
Uncommon earths are a choke level the place China dominates. And similar to with semiconductors, the U.S. authorities has no intention of letting a strategic adversary management the supplies wanted for our protection programs and next-generation know-how.
The MP Supplies stake was a transparent warning shot. It confirmed the Trump administration was keen to maneuver past grants and subsidies. They had been keen to take an precise fairness stake in an organization if that’s what it takes to guard America’s provide chains.
Intel is just the subsequent domino to fall. And it gained’t be the final…
The Subsequent Domino: Protection Contractors
Now, Intel wasn’t the one title within the headlines this week. Howard Lutnick additionally mentioned on CNBC that the Pentagon can also be weighing fairness stakes in protection contractors like Lockheed Martin Company (LMT).
Take into consideration what which means. Washington isn’t simply handing out contracts anymore – it’s speaking about proudly owning a bit of the very corporations that construct our fighter jets, missile programs and next-generation protection know-how.
Why? As a result of nationwide safety will depend on it.
Lockheed and its friends are the spine of America’s army provide chain. However prices are rising, initiatives are getting extra complicated and the geopolitical backdrop is extra harmful than it has been in a long time. The Trump administration desires to verify these corporations have the assets to scale up shortly – and it doesn’t need to depart that mission within the arms of Wall Road alone.
In different phrases, Washington is transferring from regulator to shareholder. That’s a sea change in U.S. industrial coverage. First MP Supplies. Then Intel. Subsequent, the protection sector. And, as I famous above, Kevin Hassett has mentioned there can be “many extra offers” like this.
For traders, the message is obvious: The federal government isn’t simply influencing markets from the sidelines anymore. It’s stepping straight onto the sector.
What This Means for Buyers
Taken collectively, these strikes kind a transparent sample.
First it was MP Supplies, the place the federal government backed the one U.S. uncommon earth producer. Then it was Intel, the place Washington took a ten% fairness stake to shore up home chipmaking. Now the Pentagon is signaling it could even purchase into protection contractors like Lockheed Martin.
This isn’t random. It’s a part of a broader technique.
With each government order, each tariff, and each proclamation and tweet, President Trump has been setting the stage for probably the most high-stakes moment of his second time period.
The administration is pulling out all of the stops to unleash what it calls a “inventory market increase just like the world has by no means seen.”
And are available September 30, I imagine President Trump will maintain a “massive reveal” that can drive $7 trillion – proper off the sidelines – and right into a handful of choose shares.
In truth, my system has helped me establish 5 under-the-radar corporations I imagine may surge 1,000% within the September 30 aftermath. And since they’re smaller names that the majority traders haven’t heard about, I imagine their shares may skyrocket as the cash begins flowing – similar to it did with MP Supplies.
Louis Navellier
Editor, Market 360
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
NVIDIA Corporation (NVDA)
