It's a very uneducated feeling, but it feels as a new low for them. Given the ARM/AMD races that seem to have put a shadow on Intel in the past few years. Intel used to be a source of inspiration at least for me, and this makes me sad seeing them become defense contractors.
I find it hard to imagine that they weren’t before- to be honest.
Compared to AMD, Intel is distinctly a “US” corporation, outside of that image they have large R&D centre's in Israel.
US corporations that deal with the military very often have a similar setup.
Lots of talk about Intel running their own fabs is taken with a “National Security” mindset, and, isn't it the large “too big to fail” corporations that end up very close to government anyway, even if they are very removed from being the best? Oracle comes to mind.
Mostly marketing/branding, but also that AMD is using TSMC of course.
If you asked someone not in tech "which one is american" out of AMD and Intel, they would say Intel; despite the "A" in AMD literally standing for "American"...