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The U.S. Government Just Took a 9% Stake in Intel. Here's Why That's Both Bad and Good News For Shareholders.

The good appears to outweigh the bad at this early stage.On Friday, Aug. 22, the Trump administration announced that the U.S. government would be converting 8.87billioninCHIPSActgrantmoneythathadbeenawardedtoIntel(INTC2.298.87 billion in CHIPS Act grant money that had been awarded to Intel (INTC -2.29%) into equity in the company. The government will receive just over 433 million shares at 20.47, good for about 8.85% of Intel when factoring in another recent investment by Japanese tech giant Softbank (SFTB.Y -1.86%). Needless to say, it's unusual for the U.S. governmen ...