Former Vice President Mike Pence has endorsed Republican strategist Marc Short's criticism of the Donald Trump-led administration’s stake in Intel Corporation (NASDAQ:INTC) worth $11 billion, warning that the plan betrays the GOP's free-market principles.
Marc Short Warns Of ';Abandoning Free Markets'
Short, who served as Trump's director of legislative affairs during his first term, criticized the administration's move during an appearance on The Hill on NewsNation, saying the plan reflects a shift toward state-controlled economics.
"I have never seen a Republican administration with more central planners anxious to seize the means of production," Short said, comparing the strategy to models in "Iran, China and Saudi Arabia."
He warned that taxpayer funds were being used to "subsidize American companies," a move he said contradicts core Republican values.
Short invoked the Tea Party movement, calling it a response to Washington using "the dollars of Main Street and sending it to Wall Street."
He added, "Now you're basically saying that we're going to take taxpayer dollars from blue-collar Americans and subsidize American companies."
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Pence Echoes Short's Criticism Of The Trump Administration
Pence reposted Short's remarks on X, formerly Twitter, writing, "Well said @marcshort!" and highlighting his former aide's statement: "This is not what Republicans stand for."
Trump's Intel Investment Sparks Debate
President Trump announced the Intel stake on Friday, calling it a "great deal for America" that would secure U.S. leadership in advanced chip manufacturing.
The investment, funded through CHIPS Act grants and additional federal programs, gives the government a 9.9% stake in Intel.
Analyst Ming-Chi Kuo said the move "materially raises" Intel's valuation floor but won't quickly solve its lag in advanced semiconductor technology.
Critics like economist Peter Schiff labeled the investment "unconstitutional," while leaders such as Sen. Bernie Sanders (I-Vt) supported the strategy, "If microchip companies profit from the generous grants they receive from the federal government, American taxpayers have a right to a reasonable return on that investment."
Following the mounting criticism, Trump also took to Truth Social and said, “I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS. All goes to the USA. Why are ‘st**id’ people unhappy with that?”
Trump's Nvidia & AMD Revenue-Sharing Deal Also Received Mixed Reactions
Prior to the Intel stake announcement, the Trump administration drew attention with an unprecedented arrangement involving Nvidia Corporation (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD).
Following this, billionaire investor Mark Cuban praised the controversial 15% revenue-sharing agreement, describing it as a progressive form of taxation.
Kevin O'Leary criticized the arrangement during a CNN appearance, calling the 15% payment a "form of blackmail" disguised as a creative tactic but ultimately comparing it to a tariff in practice.
O'Leary also criticized the prospect of government equity stakes in private firms like Intel. He argued that innovation in the tech sector thrives on entrepreneurial drive--not federal intervention.
Price Action: Intel's stock fell 0.81% in Tuesday's regular session but edged up 0.082% in after-hours trading, per Benzinga Pro data.
Benzinga's Edge Stock Rankings indicate INTC continues to show strength across short, medium and long-term trends. Additional performance details are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
