'Fast Money' traders react to the Trump admin possibly taking a stake in Intel

Key Concepts:

• Intel's stock performance and potential as a US-based foundry.
• Government intervention and potential nationalization of Intel.
• Strategic importance of semiconductors and rare earth materials.
• US-China tech war and concerns about foreign influence.
• Comparison to government intervention during the Great Financial Crisis.
• State-owned enterprises vs. strategic investments.

Intel's Stock Performance and Foundry Potential:

• Intel's stock has risen significantly, possibly due to the perception of government support.
• The idea of Intel becoming the "Taiwan Semi of the United States" is discussed, highlighting its potential in the foundry business.
• The security aspect of having a US-based semiconductor manufacturer is emphasized.
• The stock's rise is seen as potentially not over, suggesting further growth potential.

Government Intervention and Nationalization Concerns:

• The Trump administration's focus on bringing back manufacturing to the US is mentioned as a factor.
• Concerns are raised about the government taking a stake in Intel, comparing it to nationalization in emerging markets, where stocks often decline.
• The White House's potential mixed messaging (talking down Intel while considering investment) is noted.
• The concept of "national champion companies" is introduced as a focus of the Trump administration.

US-China Tech War and Foreign Influence:

• The discussion references "Mr. Chip in China" (Lipton) and concerns about his relationships.
• The US-China chip war and tech war are highlighted as a backdrop to the situation.
• The importance of ensuring Intel is a US company focused on US concerns is emphasized.
• The possibility of increased government control over Intel is raised if it becomes more of a government-owned entity.

Comparison to the Great Financial Crisis:

• The government's stakes in companies like GM and financial institutions during the Great Financial Crisis are mentioned as a precedent.
• The current situation is distinguished from the crisis-era interventions, as it's happening outside of a major economic crisis.
• The bargaining power of Intel is questioned, and it's uncertain whether they want government investment.

Strategic Investments and Rare Earth Materials:

• The discussion shifts to the concept of strategic investments, referencing the government's 15% stake in MP Materials.
• Rare earth materials and chips are identified as strategic sectors.
• The speaker expresses support for government investment in strategic companies, disclosing ownership of Intel and MP Materials stock.

Conclusion:

The discussion revolves around the potential for government intervention in Intel, driven by strategic considerations related to semiconductor manufacturing, national security, and the US-China tech war. While comparisons are drawn to government interventions during the Great Financial Crisis, the current situation is seen as unique. The focus on strategic investments in key sectors like semiconductors and rare earth materials is highlighted as a potential trend.