Former Intel Directors Call For Trump And Nvidia To Take Chip Giant Private: ‘Hope Is Not A Strategy’ – Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD)

Four former Intel directors, including former U.S. Trade Representative Charlene Barshefsky and former FCC Chair Reed Hundt, are calling for Intel Corp. INTC to go private as the company struggles to regain its footing in the global semiconductor market.

Writing in Fortune, they argued that Intel’s conglomerate structure is outdated and that separating design and manufacturing units is critical to restoring competitiveness.

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Intel, once the undisputed leader in both chip design and fabrication, has faced years of declining performance while rivals like Taiwan Semiconductor Manufacturing Company (TSMC) surged ahead. Now, with the Donald Trump-led U.S. government holding just under a 10% stake and Nvidia Corp. NVDA owning about 5%, the former directors see an opening. “Without the pressure of delivering quarterly earnings, a private Intel could divide itself into parts that no longer make sense to be conjoined,” they wrote.

Government Orchestration Required

Their proposal calls for the government, alongside major U.S. tech firms such as Microsoft MSFT, Apple AAPL, Amazon AMZN, and Qualcomm QCOM, to buy out Intel’s public shareholders. The company’s manufacturing arm could then be rebuilt into a foundry capable of challenging TSMC, while design businesses for personal computers, servers, and autonomous driving (via its Mobileye subsidiary) could be sold or spun out. They estimate the foundry has a book value of $70 billion but needs as much as $100 billion in new capital to compete globally.

The move follows a dramatic 28% surge in Intel’s stock price following Thursday’s announcement.

Intel CEO Lip-Bu Tan lately called the partnership both personal and strategic, praising Nvidia’s Jensen Huang as a “good friend” and stressing how their collaboration will play a key role in shaping the future of AI infrastructure and personal computing.

Plan Echoes General Electric’s Breakup

The plan echoes General Electric’s breakup, which unlocked shareholder value after years of stagnation. Critics may argue Intel can recover without intervention, but the former directors say such expectations are unrealistic in today’s market. “Hope is not a strategy,” they noted, stressing that only government-led restructuring can deliver long-term security for America’s chip ecosystem.

If executed, they argue, the overhaul could be completed within a year, creating jobs, safeguarding national security, and generating potentially hundreds of billions in taxpayer returns.

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Analysts Project Major Revenue Potential

Bank of America BAC expects the Nvidia-Intel partnership could bring in $25-50 billion in annual revenue over the long term, describing it as a “historic collaboration.” Meanwhile, JPMorgan JPM analyst Harlan Sur kept Nvidia’s Overweight rating at $215, saying that “more value is expected to go to Nvidia.”

Goldman Sachs GS sees the partnership as a setback for both Advanced Micro Devices AMD and Arm Holdings ARM, potentially weakening AMD’s position in the enterprise server market.

Price Action: According to Benzinga Pro data, the California-based tech giant closed at $29.58 on Friday, down by 3.24%.

With strong momentum in the 82nd percentile, Benzinga’s Edge Stock Rankings show that INTC has a positive price trend over all time periods. Know how its momentum lines up with other well-known names.