Intel Stock Surges Over 5% Following SoftBank's $2 Billion Investment
Intel shares jumped significantly after SoftBank announced a $2 billion stake purchase, while reports suggest the Trump administration is considering government investment in the chipmaker.
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Intel Corporation has received significant attention due to two major potential investments that could reshape its future. SoftBank has committed to investing $2 billion in Intel through purchasing common stock at $23 per share, which will result in the Japanese investment firm acquiring just under 2% equity stake in the struggling semiconductor company. This investment represents part of SoftBank's aggressive investment strategy for 2025.
Additionally, Bloomberg has reported that the U.S. government is actively considering acquiring a 10% stake in Intel, primarily as a national security measure. This potential government involvement comes amid previous tensions regarding Intel's leadership and concerns about international business relationships.
Intel is currently facing substantial operational challenges, having reported an $18.8 billion loss in its foundry business during 2024, despite receiving $8.5 billion in U.S. government subsidies. The company has been struggling to compete effectively with rivals such as Taiwan Semiconductor, Advanced Micro Devices, and Arm Holdings, particularly in advanced chip manufacturing and AI technologies.
Original Article
benzinga.comhttps://www.benzinga.com/markets/tech/25/08/47200108/intel-stock-jumps-over-5-after-hours-as-softbank-buys-2-billion-stake-trump-administration-weighs-in