Intel shares earlier jumped the most on record after the chipmaker delivered stronger-than-expected first-quarter results and issued a second-quarter forecast (read here) that beat Wall Street expectations.

Earlier, Intel shares jumped as much as 28%, rocketing to a record high and eclipsing their Dot Com peak, as Wall Street analysts cheered the earnings report as evidence that the chipmaker’s turnaround is gaining traction.

Citi analyst Atif Malik raised Intel to “Buy” from “Neutral,” with a $95 12-month price target, reflecting “improving AI-driven CPU demand, which should lift all CPU suppliers’ sales in the coming years.”

But in this note, the focus is on the value of the federal government’s position in Intel after its August 2025 deal with the once-struggling company.

Under the August 2025 deal, the Trump administration agreed to purchase 433.3 million Intel shares at $20.47 per share, equal to about a 9.9% stake, valued at around $8.9 billion, funded largely by previously awarded but unpaid CHIPS Act and Secure Enclave grants.

According to Bloomberg, those 433.3 million Intel shares owned by taxpayers are now worth a staggering $36 billion, netting taxpayers a $27 billion paper gain.

President Trump told reporters on Thursday that Intel is now "coming back. All the chip companies are coming back.”