Why does Trump Intel Buy ‘Too Late’ While Nvidia Holds 90% AI Market?

The announcement of a possible Trump Intel Stake worth nearly $11 billion has rattled both Wall Street and Silicon Valley. Reports suggest the his administration is exploring a 10% equity purchase in $INTC.

According to The Kobeissi Letter X post , this is not just another subsidy—it’s about ownership. Commerce Secretary Howard Lutnick said, “Biden gave the company money for free, Donald administration wants equity.”

The reaction was immediate. The earlier stock news showed a sudden 10% spike after the announcement.

Even more shocking, traders bought this company's stock call options just minutes before the news broke, setting them up for gains of more than 1,000%.

Why the Trump Administration Intel Company Purchase Looks Risky

Although the plan is presented as bullish, many analysts consider the Trump Administration Intel company acquisition a misstep. The firm has lost substantial ground when it comes to leading the development of advanced chipmaking, particularly with regards to artificial intelligence.

Critics argue that chipmaker is chasing the race but is still years behind. The Kobessi Letter put it bluntly: This semiconductor giant firm is “so far behind, they think they are ahead.”

This raises doubt on whether investing billions in trump $INTC chips will actually secure America’s future leadership. To some, it feels like trying to save a runner who has already fallen behind in the race.

Nvidia AI Dominance: The 90% Market Share Story

While the spotlight is on $INTC, the real power lies with the GPU powerhouse firm. With almost 90% of the AI chip market, the GPU leader has become the backbone of artificial intelligence globally.

It dominate everything from artificial learning to data centers and cloud platforms. This is why many believe supporting Nvidia is more important than pouring billions into the other company.

Weakening Nvidia through Trump tariffs or revenue-sharing rules could hurt the U.S. while helping overseas competitors. Both the company's chips battle is not equal—right now, Nvidia AI dominance is undisputed.

From Trump Intel to Nvidia: Where the Real Future Lies

As the debate unfolds, some argue it’s time to shift from chipmaker to AI champion. Nvidia continues to innovate, recently unveiling a blueprint for its AI learning essentials powered by Small Language Models.

Unlike massive LLMs such as GPT-4, these models make AI tasks faster and cheaper. At the same time, nvidia news today highlighted new AI chips for China , expanding its reach even further.

Source: Reuters Business X Account

In contrast, Intel remains locked in a struggle to catch up. The choice between the two is becoming clear: one represents the future, the other the past.

Conclusion: Betting on $INTC Past or $NVDA's Future?

The Trump Intel Stake may reflect a patriotic push to secure America’s chip industry, but the real question is whether this investment will deliver results. The chipmaker firm has a history, but GPU powerhouse has the momentum and global dominance.

So, for many analysts, the answer is simple—$NVDA is setting the pace, while the other firm is still trying to find the track.