Key points
- Treasury Secretary Scott Bessent explicitly ruled out a US government stake in Nvidia.
- Bessent cited Nvidia’s lack of need for financial support as the reason.
- The statement contrasts with the recent government investment in Intel.
- The administration remains open to strategic investments in other sectors, such as shipbuilding.
The US Treasury has definitively ruled out taking a stake in semiconductor giant Nvidia, according to Treasury Secretary Scott Bessent. In an interview on Fox Business, Bessent stated that such an investment was “not on the table,” emphasizing Nvidia’s current financial strength and lack of need for government support. This stance differs significantly from the administration’s recent actions in the semiconductor industry.
Last week, the Trump administration announced a near-10% stake in Intel, a key competitor to Nvidia. This investment underscores the government’s increasing commitment to strengthening the domestic semiconductor industry, which is considered essential for national security and technological competitiveness.
However, Bessent’s comments suggest a more targeted approach, focusing investment on companies requiring direct financial assistance to maintain or enhance their operations.
While rejecting an Nvidia investment, Bessent did not close the door on future strategic investments in other sectors. He specifically mentioned the possibility of government involvement in the reshaping of the shipbuilding industry, hinting at a broader strategy to bolster key industries deemed vital to national interests.
This suggests a targeted approach to government intervention, focusing on sectors that face significant challenges or require strategic restructuring.
The Trump administration’s involvement in US Steel, where it secured a “golden share” granting it influence over the company’s operations, further underscores its willingness to utilize strategic investments to safeguard national interests and influence crucial industries.
The differing approaches toward Nvidia and Intel exemplify the nuanced strategy employed by the administration, prioritizing investment based on individual company needs and strategic national imperatives.
