Intel on Monday warned of "adverse reactions" from investors, employees and others to the Trump administration taking a 10% stake in the company, in a filing citing risks involved with the deal.
A key concern area is international sales, with 76% of Intel's revenue in its last fiscal year coming from outside the U.S., according to the filing with the Securities and Exchange Commission. The company had $53.1 billion in revenue for fiscal year 2024, down 2% from the year prior.
For Intel's international customers, the company is now directly tied to President Donald Trump's ever-shifting tariff and trade policies.
"There could be adverse reactions, immediately or over time, from investors, employees, customers, suppliers, other business or commercial partners, foreign governments or competitors," the company wrote in the filing. "There may also be litigation related to the transaction or otherwise and increased public or political scrutiny with respect to the Company."
Intel also said that the potential for a changing political landscape in Washington could challenge or void the deal and create risks to current and future shareholders.
The deal, which was announced Friday, gives the Department of Commerce up to 433.3 million shares of the company, which is dilutive to existing shareholders. The purchase of shares is being funded largely by money already awarded to Intel under President Joe Biden's CHIPS Act.