TLDR
- SoftBank is investing $2 billion in Intel at $23 per share, slightly below Monday’s closing price of $23.66
- Intel stock jumped 6% in premarket trading following the investment announcement
- The deal could bring SoftBank’s Arm Holdings as a major customer for Intel’s chip manufacturing operations
- Reports suggest the Trump administration is considering taking up to a 10% stake in Intel by converting CHIPS Act grants to equity
- Intel desperately needs validation from external customers for its newest manufacturing processes
Intel stock got a much-needed shot in the arm Tuesday morning after Japan’s SoftBank Group announced a $2 billion investment in the beleaguered chipmaker. The stock surged 6% in premarket trading following the news.
Intel $INTC and Softbank just announced that the Japanese investment giant will make a $2 billion investment in Intel – CNBC pic.twitter.com/rXXWKcyjb4
— Evan (@StockMKTNewz) August 18, 2025
SoftBank will purchase Intel shares at $23 each. This represents a small discount to Intel’s Monday closing price of $23.66.
The timing couldn’t be better for Intel, which has been struggling to keep pace in the AI-driven semiconductor boom. The company has watched rivals race ahead while it plays catch-up.
SoftBank CEO Masayoshi Son called the move a strategic investment. He said it reflects the company’s belief that semiconductor manufacturing will expand in the United States with Intel playing a key role.
The money itself is welcome, but the real prize could be much bigger. SoftBank owns a majority stake in chip-design firm Arm Holdings.
Manufacturing Partnership Potential
Arm currently focuses on licensing its designs for mobile devices. However, multiple reports suggest the company plans to start making its own chips this year.
This could create a golden opportunity for Intel. The chipmaker desperately needs major external customers for its manufacturing operations.
Intel has been trying to attract customers to use either its newest 18A process or its future 14A process. Having Arm as a customer would provide crucial validation for these technologies.
Intel CEO Lip-Bu Tan expressed enthusiasm about deepening the relationship with SoftBank. He praised the company’s position at the forefront of emerging technology and innovation.
Tan specifically thanked SoftBank founder Masayoshi Son for showing confidence in Intel with this investment. The CEO emphasized their shared commitment to advancing U.S. technology and manufacturing leadership.
Government Stake Discussions
The SoftBank investment comes as Intel faces other potential changes to its ownership structure. Reports emerged Monday that the Trump administration was discussing taking a stake in the company.
The Wall Street Journal reported that the government could convert some of Intel’s CHIPS and Science Act funding into equity. This could give the U.S. government up to a 10% stake in the company.
Those reports actually hurt Intel’s stock on Monday, with shares dropping 3.7%. Investors seemed uncertain about the implications of government ownership.
The potential government stake would make the U.S. the company’s largest shareholder. Intel is set to receive billions of dollars through the 2022 CHIPS and Science Act.
Intel has faced a challenging year despite some positive developments. Last month, the company’s second-quarter sales beat analyst expectations.
However, Intel unexpectedly posted an adjusted loss for the quarter. CEO Tan also announced layoffs in a memo to employees.
The company has struggled with the rapid shift toward AI-focused semiconductors. Competitors have captured much of the market growth in this area.
Despite these challenges, Intel shares have managed to gain 18% this year entering Tuesday’s trading session. The SoftBank investment adds another positive element to the stock’s recent performance.
SoftBank’s investment represents more than just financial backing. It signals confidence in Intel’s manufacturing capabilities and future prospects in the semiconductor industry.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
