Shares of Intel (NASDAQ: INTC) are falling on Wednesday, down 7% as of 12:14 p.m. ET. The drop comes as the S&P 500 and Nasdaq Composite fell 0.4% and 1%, respectively. The struggling chipmaker's stock is sliding as investors await the U.S. government's decision over whether to take an equity stake in the company.

Intel looks to be set to get the U.S. government as a shareholder. The Trump administration could pursue equity stakes in other companies including Taiwan Semiconductor Manufacturing

The stock closed nearly 7% higher Tuesday after Japan’s SoftBank (JP:9984) agreed to invest $2 billion in

But Intel wasn't alone in winning CHIPS Act grants. As CNBC points out, Taiwan Semiconductor (TSMC) was awarded $6.6 billion in U.S. government semiconductor subsidies. And now it seems U.S. Commerce Secretary Howard Lutnick may want to convert that grant into an equity stake as well.

The investment case for Intel has fundamentally changed. The stock should no longer be valued solely on its near-term earnings or competitive battles. It must now be viewed as a long-term, strategic asset with a quasi-sovereign backstop, trading near its tangible book value per share of approximately $24.26.

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In a just-breaking development, Bloomberg reports the Trump administration may take a 10% stake in Intel ( INTC -3.71%) -- which perversely is down 3.9% on the news, at least as of 12:35 p.m. ET. Probably not the reaction that either the Trump administration or Intel itself anticipated.

The industry looks very different from when Intel was the clear leader. Nvidia and AMD dominate AI and data centers, while TSMC is the dominant foundry. Intel is now cast as the underdog.

Intel ( INTC) stock climbed more than 5% in pre-market trading Tuesday following the announcement that SoftBank Group ( SFTBY) will take a $2 billion stake in the ailing chip giant.

Intel Corp. shares jumped in after-hours trading Monday after the chipmaker announced a $2 billion investment by Japan’s SoftBank Group Corp.

Intel Corp (NASDAQ:INTC) shares are trading higher Tuesday after it was announced that Softbank will invest $2 billion in the company.

Shining a Spotlight on Intel Intel (NASDAQ:INTC) has emerged from the shadows of its semiconductor rivals, capturing the attention of investors and policymakers alike. After years of struggling to keep pace with competitors like Nvidia (NASDAQ:NVDA) and Taiwan Semiconductor Manufacturing (NYSE:TSM),