Stuck in a predicament becomes a bargaining chip! Boeing Company (BA.US) may become the next target of the Trump administration's "strategic investment"

Since the beginning of this year, the Trump administration has reached a series of deals to acquire stakes in companies crucial to national security and the supply chain, including chip manufacturer Intel Corporation (INTC.US) and rare earth company MP Materials (MP.US). The Trump administration's plan to acquire industry stock ownership is expected to continue through 2026, with the next target likely being aircraft manufacturer Boeing Company (BA.US). The acquisition of a 9.9% stake in Intel Corporation by the Trump administration highlights the importance of this American company, which is closest to the cutting-edge semiconductor manufacturing. Falling behind its competitor Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US), Intel Corporation has been facing long-term challenges, making it a direct target for the White House. The same logic applies to Boeing Company as well - it is one of the two dominant players in the global commercial aircraft market, a major military equipment supplier, and the largest single exporter in the United States. At the same time, it has been facing difficulties due to a series of setbacks related to fatal accidents involving its airplanes. The current predicament of Boeing Company provides the Trump administration with ample negotiation leverage for acquiring a stake in the company. The Federal Aviation Administration has set limits on the production of Boeing Company's 737 Max aircraft and has taken control over its inspection implementation. Additionally, around one-third of Boeing Company's revenue comes from its defense, space, and security division, which relies on government contracts. If the White House hopes to see returns on its investment in Boeing Company to prove the rationality of its investment, now is an attractive time to take action. According to Visible Alpha data from the end of November 2025, Wall Street analysts predict a 38% upside potential for Boeing Company's stock price in the next 12 months. If this prediction comes true, the company's market value could increase by over $50 billion. Furthermore, after a large-scale investment round, the company is expected to resume cash flow generation and possibly pay dividends. In August of this year, U.S. Commerce Secretary Lutnick stated that the Trump administration is considering acquiring stakes in large defense contractors, including Lockheed Martin (LMT.US). This news had previously boosted the stock prices of Lockheed Martin, Boeing Company, and other defense companies. However, it is worth mentioning that Boeing Company executives stated earlier in December that the Trump administration's plan to acquire industry stock ownership does not apply to large defense contractors. The CEO of Boeing Company's defense, space, and security division, Steve Parker, stated, "The plan actually applies to the supply chain sector, particularly for smaller companies. I don't think the plan applies to 'prime contractors'." He referred to "prime contractors" such as Boeing Company, Lockheed Martin, Raytheon Technologies (RTX.US), and Northrop Grumman (NOC.US), which have long histories as major defense contractors.