By Mike Murphy
Intel headquarters in Santa Clara, Calif.
Intel Corp. shares jumped in after-hours trading Monday after the chipmaker announced a $2 billion investment by Japan’s SoftBank Group Corp.
Earlier in the day, Bloomberg News had reported the Trump administration was in talks to take a 10% stake in Intel, essentially equal to the amount of funding the company received from the Chips and Science Act under the Biden administration. That sent the stock down 3.7% in regular trading.
But shares turned around in the extended session after the SoftBank announcement, rallying 5.4%.
In a statement late Monday, Intel (INTC) said the deal with SoftBank (JP:9984) comes as both companies “deepen their commitment to investing in advanced technology and semiconductor innovation” in the U.S.
“Semiconductors are the foundation of every industry,” SoftBank Chief Executive and Chairman Masayoshi Son said in a statement. “For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.”
SoftBank shares fell 1.8% in Tokyo trading.
Intel has been undergoing a painful restructuring as it tries to catch up in the AI chip game, after being surpassed by rivals such Taiwan Semiconductor Manufacturing Corp. (TSM). Intel reported another quarterly loss last month, and President Donald Trump recently called for CEO Lip-Bu Tan’s resignation, though Trump toned down his rhetoric following a meeting with Tan last week.
Read more: Trump’s clash with Intel’s CEO isn’t just politics – it’s a crucial test for U.S. chip making
In a statement Monday, Tan said he was “pleased” with SoftBank’s investment, “and I appreciate the confidence [Son] has placed in Intel.”
SoftBank will pay $23 per share of Intel common stock.
Intel shares closed Monday at $23.66 a share, and are up about 18% year to date, compared to the S&P 500’s SPX nearly 10% gain.
Also read: Opinion: Intel has 18 months to determine its future – or Qualcomm and Arm will
-Mike Murphy
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08-18-25 2241ET
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