Episode summary
Trump Weighs 10% Government Stake in Intel as Softbank Buys In | Bloomberg Intelligence
Bloomberg Intelligence
· · 20 min · Hosts: Paul Sweeney, Lisa Mateo · Guests: Dan Ives, Drew Reading, Matt Henriksson
Summary
The episode centered on three corporate stories that reflected how policy, rates, and activism are shaping markets. On Intel, a guest said the reported Trump administration plan to convert Chips Act support into about a 10% government stake would be highly unusual but could keep the company from a breakup that otherwise looked likely. He argued the move may buy time, yet Intel still faces a long, difficult turnaround and remains far behind peers like TSMC and Nvidia.
On Home Depot, another guest said the quarter was roughly in line, but still showed consumers favoring smaller repair and maintenance projects over big-ticket remodels. Higher mortgage and home-equity rates, plus frozen housing turnover, are keeping demand weak for discretionary categories. The guest said tariffs are manageable for now because Home Depot has diversified sourcing, but selective price increases could show up later this year or next year.
The Medtronic discussion focused on Elliott Investment Management’s stake and board changes. A guest said the activist is pushing for more operational discipline and future growth, while the company’s pipeline includes products like pulse field ablation and renal denervation that could help lift growth if commercialization improves. The guest also said tariff pressure appears less severe than earlier feared, helping the company raise guidance.
Key takeaways
- A guest said Intel shareholders may welcome a government stake, but the move could delay, not prevent, a strategic breakup.
- The guest said Intel has missed the AI spending boom and still trails TSMC, Nvidia, Broadcom and AMD.
- Home Depot’s demand is being held back by high rates, with consumers choosing maintenance and small projects over kitchen and bath remodels.
- The guest said Home Depot has about 50% of products sourced in the US and may face only modest price increases later this year or next year.
- On Medtronic, a guest said Elliott wants two board additions to improve efficiency and support future growth.
- The medtech guest said lower tariff pressure helped Medtronic lift full-year guidance, but execution on new products remains the key debate.
Notable quotes
“the Trump administration reportedly weighing a 10% government stake in Intel and then SoftBank buying in”
“I think ultimately if this didn't happen, strategic breakup was basically a done deal”
“consumers are pulling back on big ticket discretionary categories”
“They get about 50% of their products from the US. So they are in in pretty good shape from that regard”
How the episode opens
Bloomberg Audio Studios podcasts radio news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m.
Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. Well, a few headlines for Intel.
So, for one, the Trump administration reportedly weighing a 10% government stake in Intel and then SoftBank buying in. So, let's go to someone who knows more about this. That would be Dan Ies, global head of technology research uh this morning.
Uh joining us from Westfield, New Jersey, where they do have some good restaurants and shopping, might I?
Yes, they do. — Dan, thanks for joining us. Um so, the news this could see the US become the company's largest shareholder. I mean, what does that mean for Intel, but also for the future? Are we going to be seeing more of this?
Look, I mean, Intel, you know, as everyone know, backwards against the wall. I mean, I look, I think ultimately if this didn't happen, strategic breakup was basically a done deal. And and I think US government recognized, not necessarily national security, but like they needed to revive Intel.
clearly unorthodox in terms of the structure, but for Intel, I mean, it's a little Cinderella story, at least that's happening here, you know, based on a lot of dark days we've seen the last few years.
And Lisa, you may not be aware, but the preseason rankings for college football have come out and Penn State is number two. That's the highest I can remember. — Okay. — And I've been following these dudes for a long time since I was a kid. Hey Dan, how do investors feel about the US government taking a direct equity investment in a company?
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- intel government stake
- chips and science act
- home depot earnings
- medtronic earnings guidance
- medtech board expansion
Companies and tickers mentioned
- INTC
- SFTBY
- HD
- MDT
- Intel
- SoftBank
- Home Depot
- Medtronic
- Elliott Investment Management
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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