Intel Corp (NASDAQ: INTC) is rallying late on Friday after President Donald Trump confirmed the US government has finalised a deal to take a 10% equity stake in the beleaguered chipmaker.The aforementioned agreement marks an extraordinary federal intervention in corporate America.The announcement, expected to be formalized later in the day, follows a $2.0 billion boost INTC received from Softbank – signalling renewed investor confidence in its turnaround efforts.Intel’s stock has been in a sharp uptrend in August. Including today’s rally, it’s up roughly 30% versus the start of this month.At the time of writing, the stock was up 7% at $25.15.Why a government stake may prove positive for Intel stock?Federal support could offer INTC stock the much-needed breathing room as it attempts to revive its foundry division and compete with global rivals.Experts anticipate capital infusion and political backing to help secure new customers for Intel’s advanced manufacturing facilities, despite its weak product roadmap.The move also signals a broader commitment to reshoring semiconductor production, which could benefit Intel as a strategic national asset.With geopolitical tensions rising and chip supply chains under scrutiny, INTC’s alignment with national security goals may enhance Intel stock’s long-term valuation.Why Professor Walter Isaacson isn’t in favor of INTC-US dealWhile the Trump administration taking a stake in the semiconductor firm sure could prove positive for Intel shares, critics warn the deal reflects a troubling shift toward state capitalism.In a recent CNBC interview, Tulane University professor Walter Isaacson expressed concern over the precedent. “You’re seeing state capitalism here, where the government is interfering in all sorts of ways in corporate decisions,” he said.Isaacson cautioned that such interventions often evolve into crony capitalism, where favoured companies benefit from political ties rather than market merit.“That is a recipe for not only disaster but just sort of a corrupt sense of messiness,” he added.According to the industry expert, direct equity stakes risk undermining free-market dynamics and investor confidence. Note that INTC shares are still down nearly 9.0% versus its year-to-date high.Are INTC shares worth investing in today?Intel stock may look attractive in the short term, buoyed by federal backing and strategic relevance.However, long-term investors should weigh the risks of political entanglement and execution challenges. The foundry business remains unprofitable, and the company’s product roadmap lags behind competitors like Nvidia and TSMC.While government support could stabilize operations, it may also introduce regulatory overhang and distort competitive incentives.For risk-tolerant investors betting on US manufacturing revival, INTC shares offer upside. But for those wary of policy-driven volatility, it may be wise to wait for clearer signs of operational turnaround and market-driven growth.Note that Wall Street also currently rates Intel shares at “hold” only, with the mean target of about $22 indicating potential “downside” of roughly 8.0% from here.The post Intel stock pops 7% as Trump confirms stake, but some say it's a 'recipe for disaster' appeared first on InvezzIntel Corp (NASDAQ: INTC) is rallying late on Friday after President Donald Trump confirmed the US government has finalised a deal to take a 10% equity stake in the beleaguered chipmaker.The aforementioned agreement marks an extraordinary federal intervention in corporate America.The announcement, expected to be formalized later in the day, follows a $2.0 billion boost INTC received from Softbank – signalling renewed investor confidence in its turnaround efforts.Intel’s stock has been in a sharp uptrend in August. Including today’s rally, it’s up roughly 30% versus the start of this month.At the time of writing, the stock was up 7% at $25.15.Why a government stake may prove positive for Intel stock?Federal support could offer INTC stock the much-needed breathing room as it attempts to revive its foundry division and compete with global rivals.Experts anticipate capital infusion and political backing to help secure new customers for Intel’s advanced manufacturing facilities, despite its weak product roadmap.The move also signals a broader commitment to reshoring semiconductor production, which could benefit Intel as a strategic national asset.With geopolitical tensions rising and chip supply chains under scrutiny, INTC’s alignment with national security goals may enhance Intel stock’s long-term valuation.Why Professor Walter Isaacson isn’t in favor of INTC-US dealWhile the Trump administration taking a stake in the semiconductor firm sure could prove positive for Intel shares, critics warn the deal reflects a troubling shift toward state capitalism.In a recent CNBC interview, Tulane University professor Walter Isaacson expressed concern over the precedent. “You’re seeing state capitalism here, where the government is interfering in all sorts of ways in corporate decisions,” he said.Isaacson cautioned that such interventions often evolve into crony capitalism, where favoured companies benefit from political ties rather than market merit.“That is a recipe for not only disaster but just sort of a corrupt sense of messiness,” he added.According to the industry expert, direct equity stakes risk undermining free-market dynamics and investor confidence. Note that INTC shares are still down nearly 9.0% versus its year-to-date high.Are INTC shares worth investing in today?Intel stock may look attractive in the short term, buoyed by federal backing and strategic relevance.However, long-term investors should weigh the risks of political entanglement and execution challenges. The foundry business remains unprofitable, and the company’s product roadmap lags behind competitors like Nvidia and TSMC.While government support could stabilize operations, it may also introduce regulatory overhang and distort competitive incentives.For risk-tolerant investors betting on US manufacturing revival, INTC shares offer upside. But for those wary of policy-driven volatility, it may be wise to wait for clearer signs of operational turnaround and market-driven growth.Note that Wall Street also currently rates Intel shares at “hold” only, with the mean target of about $22 indicating potential “downside” of roughly 8.0% from here.The post Intel stock pops 7% as Trump confirms stake, but some say it's a 'recipe for disaster' appeared first on Invezz