Following the announcement that Softbank, a major Japanese technology investment firm, would purchase a $2 billion (£1.5 billion) stake in the US computer chip manufacturer, Intel's stock has surged.
The news was made just hours after fresh rumors surfaced that the Trump administration is negotiating to convert federal funding into shares of Intel, so acquiring a roughly 10% interest.
First reported last week, the possible purchase would assist Intel in establishing a flagship manufacturing facility in Ohio. The rumors "should be regarded as speculation" until they are formally disclosed, a White House spokesperson told the BBC at the time.
Intel and the White House have been contacted by the BBC for comment.
Softbank will pay $23 per Intel share as part of the agreement that was announced on Monday.
"The investment comes as both Intel and SoftBank deepen their commitment to investing in advanced technology and semiconductor innovation in the United States," the two businesses said in a joint statement.
During Monday's after-hours trading in New York, Intel's stock increased by over 5%.
US President Donald Trump and his cabinet met with Intel CEO Lip-Bu Tan last week.
Trump accused Mr. Tan of being "highly conflicted" because of his past ties to China, and he asked for his resignation only days before the meeting.
The events occurred at a time when the White House is closely monitoring the US semiconductor industry.
The possible agreement between Intel and the US government has been characterized by some analysts as a lifeline for the company.
One of the few American companies that can produce high-end semiconductors on a large scale is Intel.
However, it has fallen behind competing chip makers like TSMC and Samsung on a global scale.
The business stated on Thursday that it was "deeply committed to supporting President Trump's efforts" to advance technology and manufacturing in the United States, but it declined to comment on the alleged conversations.
Such an agreement would mark a "major escalation" in what seems to be an attempt by the Trump administration to reshape the US government's role in the private sector, said political scientist Sarah Bauerle Danzman from Indiana University.
But the potential move sets a "concerning precedent" as it raises questions about whether companies may be pushed to follow political agendas, she said.
Additionally, it shows Washington's commitment to Intel's success and the protection of the computer chip supply chain, according to Dan Sheehan of Telos Wealth Advisors.
"[The Government's] agenda is clear: Accelerate domestic production, reduce dependence on Asia, and position Intel at the centre of the AI and national security landscape," he stated.
He went on to say that SoftBank's investment is a "clear vote of confidence" in Intel's recovery.
In a historic agreement to obtain export licenses to China, Nvidia and AMD agreed last week to provide the US government 15% of their Chinese profits.
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