Commerce Secretary Howard Lutnick told CNBC the U.S. government wants a stake in Intel in exchange for CHIPS Act grant money promised under Biden.

President Donald Trump wants the U.S. government to own a piece of Intel, less than two weeks after demanding the Silicon Valley pioneer dump the CEO that was hired to turn around the slumping chipmaker.

After months of turbulence, Intel Corp. bulls are finally being rewarded for their patience. But the stock’s sudden rebound comes with a worrying side effect: a valuation so high its most recent precedent is from the dot-com era more than two decades ago.

Shares in the chip maker rose following news of SoftBank’s planned investment and a possible stake for the U.S. government.

Director of National Intelligence Tulsi Gabbard said the British government order “would have enabled access to the protected encrypted data of American citizens.”

A US government plan to take a stake in Intel Corp. would give the ailing chipmaker a powerful backer, even if a bigger challenge still lies ahead: finding enough paying customers.

The stock closed nearly 7% higher Tuesday after Japan’s SoftBank (JP:9984) agreed to invest $2 billion in

Intel is in talks with other large investors to get an equity infusion at a discounted price, sources told CNBC's David Faber. It comes after SoftBank announced it would invest $2 billion in the struggling chipmaker.