Intel’s Stock Boom Cost It $12.6B On Paper, Thanks To Uncle Sam’s Stake

Intel‘s soaring share price has cost the chipmaker $12.6 billion on paper so far this year, because of shares it set aside for the U.S. government in last year’s rescue deal, its latest quarterly filing shows.

Key Takeaways

• Intel booked a $12.6 billion loss in the first nine months of 2026 from shares held in escrow for the U.S. government
• The loss is on paper only and grows when Intel’s stock goes up
• A dip in the stock during the third quarter handed Intel a $1.0 billion gain, about 30% of its $3.3 billion quarterly profit
• Without the charge, Intel would have made a pre-tax profit of about $1.8 billion this year instead of a $10.8 billion loss

What Intel Disclosed

Intel said in its quarterly report filed on Friday that it recognized “a loss of $12.6 billion” in the nine months to Sept. 26 from the change in value of shares it holds in escrow for the government. In the third quarter alone, the same shares produced “a gain of $1.0 billion,” because Intel’s stock price fell during the quarter.

The company valued what it owes on those shares at $13.7 billion at the end of September, up from $2.7 billion at the end of 2025. It warned it expects “further such gains or losses in future periods” as its stock moves.

Why A Rising Stock Costs Intel Money

The charge goes back to August 2025, when Intel agreed to sell the government 433.3 million new shares at $20.47 each, a 9.9% stake worth $8.9 billion. The money came from $5.7 billion in chip grants Intel had been promised but not yet paid, plus $3.2 billion from Secure Enclave, a program to make secure chips for the military.

The Secure Enclave shares sit in escrow and are handed over only as the Commerce Department pays Intel for that work. Accounting rules treat those promised shares like a debt valued at today’s stock price. When Intel’s stock rises, the debt gets bigger and Intel books a loss. When the stock falls, the debt shrinks and Intel books a gain. No cash changes hands either way.

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That made 2026’s rally expensive on paper. Intel’s shares ended 2025 at about $46 and closed September at about $92, according to Yahoo Finance data.

How Much It Changed Intel’s Results

The swing is big enough to flip Intel’s bottom line. For the first nine months of the year, Intel reported a pre-tax loss of $10.8 billion and a net loss of $11.4 billion. Strip out the $12.6 billion escrow charge and pre-tax income would have been about $1.8 billion.

The third quarter ran the other way. Intel earned $3.3 billion, and the $1.0 billion escrow gain made up roughly 30% of that. The underlying business did improve. Revenue rose 21% from a year earlier to $16.5 billion, and operating income climbed to $2.5 billion from $683 million.

What Is Still In Escrow

Intel released about 11 million escrowed shares to the government in the third quarter and 24 million so far this year, as Secure Enclave payments came in. Another 132 million shares were still in escrow at the end of September.

The government also holds a warrant to buy up to 241 million more Intel shares at $20 each. It can only be used if Intel stops owning at least 51% of its chip factory business.

What To Watch

Intel’s stock has fallen to about $67 in October. If it stays near that level, the same math that cost Intel billions this year would work in its favor in the fourth quarter, adding a paper gain to its results. Either way, investors reading Intel’s profit will need to separate the chip business from a bet on its own share price that Intel cannot control.

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