Intel stock popped on Friday on a report the US government could take a stake in the ailing chip company.

Intel shares surged after-hours following reports of a potential Trump administration investment to revive its Ohio chip factory, as analysts weigh both the strategic boost and risks amid executive challenges and competitive pressures.

President Trump had urged CEO Lip-Bu Tan to step down over his past ties with China. But the narrative flipped last week after a highly positive White House meeting

According to the news agency, Intel, which burned through more than $15.5 billion in negative free cash flow last year, has had to delay construction of a new semiconductor facility in Ohio due to lack of cash.

Enthusiasm for a potential U.S. government stake in Intel Corp. is pushing the chip maker's stock toward its best week in 50 years. Intel shares were up 6.8% in Friday trading, on top of a 7.4% rise in Thursday's session.

Intel's stock climbed Friday, while other chip stocks slid after President Trump told reporters semiconductor tariffs could climb as high as 300%.

Interest from the US government potentially signals Intel as a critical player in U.S. semiconductor and national security strategy.

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