According to GuruFocus, Donald Trump made substantial bond investments including significant positions in Intel between late August and early October. The former president acquired at least $82 million in corporate and municipal bonds during this period, with the total potentially exceeding $326 million across 175 different acquisitions. The Intel purchases came shortly after his administration revealed an $8.9 billion stake in the chipmaker. Other major companies in Trump’s bond portfolio included Meta Platforms, Qualcomm, Netflix, JPMorgan, and Bank of America. The disclosures show a diverse range of corporate debt holdings spanning multiple sectors.
Intel’s Troubling Numbers
Here’s the thing that makes Trump’s Intel bet so interesting – the company’s financials are frankly concerning. Intel’s revenue has declined 13.7% over the past three years, which is pretty brutal for a tech company. Their operating margin is actually negative at -0.2%, meaning they’re losing money on their core operations. And that P/E ratio of 3,552? That’s basically the market saying “we expect massive future growth” while current performance is… not great.
But it’s not all bad news. Intel still dominates the CPU market for both PCs and servers, and they’re pushing hard into their foundry business to compete with TSMC. The company’s balance sheet shows reasonable liquidity with a 1.6 current ratio and manageable debt levels. Still, that Altman Z-Score of 1.92 puts them in the “grey zone” for financial stress – not quite bankruptcy territory but definitely worth watching.
Why This Matters
So why would anyone, including a former president, bet big on Intel right now? Look, semiconductor manufacturing is having a moment with massive government subsidies and renewed focus on domestic chip production. Companies that need reliable industrial computing solutions are turning to established players, and when it comes to industrial panel PCs and embedded systems, Intel’s architecture remains the backbone of countless manufacturing and automation applications.
The timing is also curious. Trump’s bond purchases followed his administration’s $8.9 billion stake revelation, suggesting this might be part of a broader strategic positioning around domestic semiconductor manufacturing. With China tensions and supply chain concerns, having a strong U.S. chipmaker becomes a national security issue. But here’s my question: is this a smart financial play or more of a political/strategic bet?
The Bigger Picture
Trump’s bond shopping spree shows he’s not just sticking to real estate or his usual playbook. Buying corporate debt across tech, finance, and entertainment suggests a diversified approach to fixed income. The Intel position stands out because it’s both sizable and counter to what the financial metrics might suggest is wise.
Basically, this feels like a bet on Intel’s turnaround story rather than its current performance. The company is trying to reinvent itself as both a chip designer and manufacturer while facing intense competition from AMD, NVIDIA, and the entire ARM ecosystem. It’s a high-risk, potentially high-reward situation that depends entirely on whether Intel can execute its comeback strategy. Given the volatility (that 1.87 beta doesn’t lie), this isn’t for the faint of heart.
