Commerce Secretary Howard Lutnick said Tuesday the Trump administration is considering whether to take equity stakes in major U.S. defense contractors, citing ongoing internal discussions that follow the government’s recent purchase of a sizable position in Intel.

Lutnick, speaking on CNBC’s “Squawk Box,” said military leaders in the Trump White House are examining options for direct ownership in companies central to U.S. weapons production.

He referenced the administration’s earlier move to acquire 10% of Intel’s stock for $9 billion as context for the broader review.

“Oh, there’s a monstrous discussion about defense,” Lutnick said.

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“I mean Lockheed Martin makes 97% of their revenue from the U.S. government.”

“They are basically an arm of the U.S. government. They make exquisite munitions. I mean amazing things that can knock a missile out of the air when it’s coming towards you,” Lutnick said.

“But what’s the economics of that? I’m going to leave that to my Secretary of War and the deputy Secretary of War. These guys are on it and they’re thinking about it.”

He added that “a lot of talking” remains on how the United States finances its munitions acquisitions.

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Lockheed Martin, the world’s largest defense contractor by revenue according to a 2024 DefenseNews list, said it continues to coordinate with the administration.

“As we did in his first term, we are continuing our strong working relationship with President Trump and his Administration to strengthen our national defense,” a Lockheed Martin spokesperson told FOX Business.

The company’s shares rose about 1.5% Tuesday morning following Lutnick’s remarks.

Lockheed Martin is the lead contractor for the F-35 Lightning stealth fighter program, which is fielded by the U.S. Air Force, Navy and Marine Corps, as well as the militaries of numerous U.S. allies.

Lutnick’s comments came days after the administration said it would take a roughly 10% stake in Intel by investing $8.9 billion in the company’s common stock.

President Donald Trump described the transaction on Truth Social. “I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS,” he wrote.

“All goes to the USA. Why are ‘stupid’ people unhappy with that? I will make deals like that for our Country all day long. I will also help those companies that make such lucrative deals with the United States States. I love seeing their stock price go up, making the USA RICHER, AND RICHER. More jobs for America!!! Who would not want to make deals like that?”

NEW: President Trump reveals he paid $0 for approximately $11B worth of Intel stock (10% stake). “I love seeing their stock price go up, making the USA RICHER, AND RICHER.”Trump wrote on Truth Social: “I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS. All… pic.twitter.com/oFn9DnUISK

— RedWave Press (@RedWave_Press) August 25, 2025

Though Trump did not detail the $11 billion figure in the post, Intel outlined funding sources for the equity stake in a regulatory filing.

The company said the stake will be funded by $5.7 billion in remaining grants previously awarded and $3.2 billion awarded under the Secure Enclave program; Intel added it had already received $2.2 billion in CHIPS grants and that the new investment brings the government’s total commitment to $11.1 billion.

Intel CEO Lip-Bu Tan will remain in his role. The decision follows Trump’s earlier recommendation that he be removed over ties to China.

“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American-made,” Tan said in announcing the deal.

Market reactions were mixed during Tuesday morning trading. Intel’s stock was down more than 0.55% and has declined about 1.5% over the past five days. Lockheed Martin shares advanced roughly 1.5% after Lutnick’s interview.

The possible expansion of federal equity ownership from semiconductors into defense manufacturing, as described by Lutnick, would represent a new approach to securing supply chains for advanced munitions and platforms.

Lutnick said final judgments on the economics and structure of any stake would be guided by the Department of War’s leadership.

He did not identify specific contractors under consideration beyond citing Lockheed Martin’s revenue exposure to U.S. government programs.

No timeline was provided for a decision on acquiring equity stakes in defense firms.

Lutnick said policy and financing questions will be central to the administration’s ongoing review of munitions procurement and industrial base capacity.

Watch Howard Lutnick's full interview:

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