US eyes equity stakes in defense firms following Intel investment
Published: 13:13 26 Aug 2025 EDT
The Trump administration is exploring the possibility of acquiring equity stakes in US defense companies, Commerce Secretary Howard Lutnick said Tuesday, following the government’s recent 10% stake in Intel Corp (NASDAQ:INTC, ETR:INL).
“They’re thinking about it,” Lutnick told CNBC, citing Pentagon leaders, when asked whether the administration is considering stakes in contractors such as Lockheed Martin Corp (NYSE:LMT), Boeing Co (NYSE:BA, ETR:BCO), or Palantir Technologies Inc (NYSE:PLTR).
“There’s a lot of talking that needs to be had about how do we finance our munitions acquisitions,” he said.
Lutnick described discussions around the defense industry as “monstrous,” noting that firms like Lockheed Martin derive nearly all of their revenue from US government contracts and are, in effect, an extension of the federal government.
Lockheed Martin shares rose 1.6% following Lutnick’s remarks.
The company said it is “continuing our strong working relationship with President Trump and his administration to strengthen our national defense.”
Boeing’s stock increased 2%, while Palantir added 2.6%. Neither company has commented on Lutnick’s comments.
The comments follow a series of White House interventions in U.S. companies. Last week, the administration acquired a near-10% stake in Intel. In July, it took an approximately 15% stake in rare-earths producer MP Materials and brokered agreements with chipmakers Nvidia and AMD involving revenue from sales to China.
