Intel Shares Surge as SoftBank Invests $2B Amid Trump Administration’s Stake Plans
Intel shares rallied on Tuesday, rising more than 6% in premarket trading after SoftBank Group announced a $2 billion investment in the struggling American chipmaker. A Japanese technology investor agreed to buy Intel’s newly issued shares for $23 each, below Monday’s closing price of $23.66.
The investment comes amid reports that the Trump administration is in talks to take over the key ownership position Intel. According to Bloomberg, the government is considering converting grants made under the US Chips and Science Act into a 10% stake in the company. At Intel’s current market valuation, such a stake would be worth about $10.4 billion.
“Semiconductors are the foundation of every industry,” SoftBank Group chairman and CEO Masayoshi Son said in an Intel announcement.
“For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor production and supply will expand in the United States, with Intel playing a key role.”
The positive market reaction comes despite recent turmoil at Intel.
In July, the company announced plans to cut about 15% of its global workforce as part of a major restructuring effort. According to legal filings, more than 5,000 workers across California, Oregon, Arizona and Texas have received layoff notices, with most of the cuts focused on the company’s West Coast operations.
Adding to the company’s challenges, President Donald Trump publicly called for CEO Lip-Bu Tan to resign earlier this month. In a Truth Social post, Trump described Tan as “very controversial,” referring to alleged ties to Chinese companies. The criticism followed concerns raised by Senate Republicans about Tan’s investments in semiconductor companies allegedly linked to the Chinese Communist Party.
Despite the headwinds, the two investments represent a vote of confidence in Intel’s turnaround efforts under Tan, who recently scaled back expansion plans following an unexpected adjusted loss in the second quarter. If the US government goes ahead with its reported plans, it will become the largest shareholder of Intel, and SoftBank will be ranked as the fifth largest investor.
“We are very pleased to deepen our relationship with SoftBank, a leading company in many areas of emerging technology and innovation and share our commitment to advancing American technology and manufacturing leadership,” said Intel CEO Lip-Bu Tan.
“Masa and I have worked together for decades, and I appreciate the confidence you have placed in Intel with this investment.”
Intel shares have experienced significant volatility in recent days. They first jumped nearly 9% last week on news of a potential government investment, before falling 3.7% on Monday when information emerged on the size of the potential investment.
Despite recent challenges, including slowing productivity growth and competitive pressures, Intel stock has performed well in 2025, up 18% year to date before today’s surge.
