Shares of Intel (INTC 5.62%) are moving higher on Friday, up 5.5% as of 12:50 p.m. ET. The jump comes as the S&P 500 (^GSPC 0.56%) was up 0.3% and the Nasdaq Composite (^IXIC 0.34%) was flat.

The chipmaker’s stock is gaining after The Wall Street Journal reported that President Trump is considering a tariff on semiconductor companies that rely too heavily on foreign manufacturers.

New tariffs could be coming soon

The Journal reported this morning that President Trump is considering a tariff on chipmakers that manufacture more chips overseas than in the U.S. If companies don’t maintain at least a 1-to-1 ratio of chips fabricated domestically to internationally, they could soon face a stiff tariff.

The move is part of the Trump administration’s effort to boost domestic chip manufacturing, a cornerstone of the administration’s national security strategy, as well as its broader efforts to reshore American manufacturing.

Image source: Getty Images.

The news comes just a month after the administration reached an agreement that makes the federal government a significant shareholder in Intel, with a roughly 10% stake in the ailing chipmaker.

Intel has its work cut out for it

The federal government isn’t the only one investing in Intel. Just last week, Nvidia announced it would invest $5 billion and partner with Intel to enhance some of its artificial intelligence (AI) data center products. These are good partners to have, but Intel has much further to go in its turnaround efforts.

The dominant U.S. chipmaker for years, the company fell behind in the age of generative AI. Its top and bottom lines have taken a severe beating, and the company has gone through significant restructuring and major layoffs in an attempt to stabilize its balance sheet.

I do think that Intel is on the right track, however. For investors comfortable with risk, Intel is a good pick.