Uncle Sam buying an equity stake in Intel is unlikely to solve the chipmaker's underlying problems, according to Bernstein.

The U.S. government's stake in Intel would help fund factories it's currently building in Ohio, according to the report.

The hedge fund billionaire has built a sizable stake in the U.S. chipmaker that in recent days has drawn fierce from the Trump administration.

The plan stems from a meeting between CEO Lip-Bu Tan and Trump, who had demanded he resign over his Chinese investments.

Luria said such a deal is needed to revive Intel and reduce the country's reliance on companies like Samsung and TSMC to manufacture chips.

Uncle Sam buying an equity stake in Intel is unlikely to solve the chipmaker's underlying problems, according to Bernstein.