Intel says Trump deal has risks for shareholders, international sales

Intel on Monday warned of “adverse reactions” from investors, employees and others to the Trump administration taking a 10% stake in the company, in a filing citing risks involved with the deal.

A key concern area is international sales, with 76% of Intel’s revenue in its last fiscal year coming from outside the U.S., according to the filing with the Securities and Exchange Commission. The company had $53.1 billion in revenue for fiscal 2024, down 2% from the year prior.

For Intel’s international customers, the company is now directly tied to President Donald Trump’s ever-shifting tariff and trade policies.

“There could be adverse reactions, immediately or over time, from investors, employees, customers, suppliers, other business or commercial partners, foreign governments or competitors,” the company wrote in the filing. “There may also be litigation related to the transaction or otherwise and increased public or political scrutiny with respect to the Company.”

Intel also said that the potential for a changing political landscape in Washington could challenge or void the deal and create risks to current and future shareholders.

The deal, which was announced Friday, gives the Department of Commerce up to 433.3 million shares of the company, which is dilutive to existing shareholders. The purchase of shares is being funded largely by money already awarded to Intel under President Joe Biden’s CHIPS Act.

Intel has already received $2.2 billion from the program and is set for another $5.7 billion. A separate federal program awarded $3.2 billion, for a total of $11.1 billion, according to a release.

Trump called the agreement “a great Deal for America” and said the building of advanced chips “is fundamental to the future of our Nation.” 

Shares of Intel rallied as momentum built toward a deal in August, with the stock up about 25% for the month so far.

The agreement requires the government to vote with Intel’s board of directors. In the Monday filing, the company noted that the government stake “reduces the voting and other governance rights of stockholders and may limit potential future transactions that may be beneficial to stockholders.”

However, the filing notes that Commerce may vote its shares against any move that might unwind the deal or otherwise reject the government’s stake in Intel.

Furthermore, the company acknowledged in the filing that it has not completed an analysis of all “financial, tax and accounting implications.”

Intel’s tumultuous fiscal 2024 included the exit of CEO Pat Gelsinger in December after a four-year tenure during which the stock price tanked and the company lost ground to rivals in the artificial intelligence boom.

CEO Lip-Bu Tan took the helm in March.