Squawk on the Street Commerce Sec. Lutnick on Intel, Home Depot Misses, Palo Alto Surges 8/19/25
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Aug 19, 2025 
Howard Lutnick, the Commerce Secretary, dives into the U.S. government's potential investment in Intel, spotlighting SoftBank's recent $2 billion stake. He discusses the implications of the CHIPS Act for domestic semiconductor manufacturing and the balance between corporate support and taxpayer benefit. Other hot topics include Home Depot's disappointing earnings, surging shares of Palo Alto Networks, and the impact of recent trade agreements on American exporters. Lutnick also touches on the housing market dynamics influenced by economic fluctuations.
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CHIPS Funds Could Become Equity
- The Intel story centers on whether CHIPS Act funds become equity rather than grants, altering taxpayer exposure.
- SoftBank's $2B new equity is small relative to Intel's capex and won't materially change manufacturing capacity.
Demand Return For Government Chip Funding
- Convert promised CHIPS Act grants into equity to secure taxpayer upside when funding large firms.
- Insist on returns or rights rather than giving away funds to already-large companies.
National Security Drives Industrial Policy
- National security motivates pushing semiconductor production to the U.S. to reduce Taiwan dependence.
- The administration frames equity stakes as ensuring Americans 'get the benefit of the bargain.'