Intel stock was down 3.9% after Bloomberg reported that the Trump administration could convert Chips Act grants into a 10% equity stake in Intel.

Intel shares fell 3.7% on Monday, after reports that Trump administration officials are talking about taking a 10% stake in the chip maker. The move would be part of a government effort to save the embattled company and boost semiconductor manufacturing in the U.

In a just-breaking development, Bloomberg reports the Trump administration may take a 10% stake in Intel ( INTC -3.71%) -- which perversely is down 3.9% on the news, at least as of 12:35 p.m. ET. Probably not the reaction that either the Trump administration or Intel itself anticipated.

The shares of the chip giant lost 60% of their value last year as it could not gain traction in the artificial intelligence (AI) market, which is dominated by Nvidia

Shares of Intel (NASDAQ:INTC) were on track to snap six days of gains, as the stock fell more than 2.7% to $23.92 in Monday afternoon trade.  The chipmaker gained more than 23% in the last six trading sessions.

We recently published 10 Double-Digit Winners You Wish You Bought Yesterday. Intel Corp. (NASDAQ:INTC) is one of the last week’s top performers. Shares of Intel Corp. jumped by 23.1 percent week-on-week as investors took heart from the US government’s potential financial backing in a bid to support the long beleaguered chipmaker.

SoftBank Group is taking a $2 billion equity stake in Intel, the two companies said on Monday, amid a ramp-up in efforts to provide financial support to the struggling U.S. chipmaker. Julian Satterthwaite reports.