The Trump administration is weighing acquiring equity stakes in U.S. defense contractors, Commerce Secretary Howard Lutnick said on Tuesday.
Lutnick said in an interview on CNBC’s “Squawk Box” that military leaders in the Trump White House are considering whether the administration should acquire equity stakes in defense companies after it acquired 10% of Intel’s stock for $9 billion.
“Oh, there’s a monstrous discussion about defense,” Lutnick said. “I mean Lockheed Martin makes 97% of their revenue from the U.S. government.”
“They are basically an arm of the U.S. government. They make exquisite munitions. I mean amazing things that can knock a missile out of the air when it’s coming towards you,” Lutnick said. “But what’s the economics of that? I’m going to leave that to my secretary of defense and the deputy secretary of defense. These guys are on it and they’re thinking about it.”
Lutnick also said that “a lot of talking” needs to be done regarding how the U.S. finances its munitions acquisitions.
TRUMP DEFENDS $11B INTEL STAKE, SAYS HE WILL MAKE DEALS LIKE IT ‘ALL DAY LONG’
A Lockheed Martin spokesperson told FOX Business, “As we did in his first term, we are continuing our strong working relationship with President Trump and his Administration to strengthen our national defense.”
Lockheed Martin’s stock rose about 1.5% on Tuesday morning following Lutnick’s interview.
The company is the world’s largest defense contractor by revenue, according to a list produced by DefenseNews in 2024.
Lockheed Martin is the lead contractor for the F-35 Lightning stealth fighter program, which is used by the U.S. Air Force, Navy and Marine Corps as well as the miliaries of numerous U.S. allies.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LMT | LOCKHEED MARTIN CORP. | 447.72 | +1.52 | +0.34% |
TRUMP SAYS INTEL HAS AGREED TO GIVE THE US A 10% STAKE IN THE COMPANY
Lutnick’s comments about U.S. defense contractors come after the Trump administration last week announced that it would take a roughly 10% stake in struggling chipmaker Intel by investing $8.9 billion in the company’s common stock.
“I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS,” President Donald Trump wrote on his Truth Social platform. “All goes to the USA. Why are ‘stupid’ people unhappy with that? I will make deals like that for our Country all day long. I will also help those companies that make such lucrative deals with the United States States. I love seeing their stock price go up, making the USA RICHER, AND RICHER. More jobs for America!!! Who would not want to make deals like that?”
Though Trump did not provide details on the $11 billion, the stake is roughly equal to the amount Intel received in grants under the CHIPS Act to fund construction of chip plants in the U.S.
Intel said in a regulatory filing that the equity stake will be funded by the remaining $5.7 billion in grants previously awarded and $3.2 billion awarded to the company as part of the Secure Enclave program, while it has already received $2.2 billion in CHIPS grants and the new investment will bring the government’s total commitment to $11.1 billion.
INTEL CEO TO VISIT WHITE HOUSE AFTER TRUMP CALLED FOR HIS OUSTER OVER ALLEGED CHINA TIES: REPORT
Intel CEO Lip-Bu Tan will remain as the company’s leader after President Trump initially recommended he be fired over his ties to China.
“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American-made,” Tan said in announcing the deal.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| INTC | INTEL CORP. | 24.55 | -0.25 | -1.01% |
Intel’s stock was down over 0.55% on Tuesday morning, and its shares are down about 1.5% in the past five days.
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