US government Intel stake yields $40 billion paper profit
Updated
Updated · Barron's · May 8
US government Intel stake yields $40 billion paper profit
7 articles · Updated · Barron's · May 8
Its 433.3 million Intel shares, bought for $8.9 billion last August as part of an $11.1 billion deal, were worth about $49 billion on Wednesday.
The gain is unrealised because the government cannot sell before 27 August, but Intel shares have surged nearly 370% since the investment, far outpacing the S&P 500's 14% rise.
Barron's said 16 publicly announced Trump-era deals totalled $21 billion, many in critical minerals, reflecting a strategy to reshore supply chains and reduce reliance on China and other countries.
Beyond security, what precedent does this government-as-investor model set for the future of the U.S. economy?
With billions in paper profits, what is the government's long-term exit strategy for its strategic corporate investments?
Is America's new industrial policy creating global partners or sparking a new worldwide subsidy race?