SoftBank to Invest $2 billion in Intel

Source Credit : CNBC

Intel and SoftBank announced on Monday that the Japanese conglomerate will make a $2 billion investment in the embattled chipmaker.

SoftBank will pay $23 per share for Intel’s common stock, which closed on Monday at $23.66. The shares rose about 6% in extended trading to $25.

The investment, equal to about 2% of Intel, makes SoftBank the fifth-biggest shareholder, according to FactSet. It’s a vote of support for Intel, which hasn’t been able to take advantage of the artificial intelligence boom in advanced semiconductors and has spent heavily to stand up a manufacturing business that’s yet to secure a significant customer.

“Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment,” Intel CEO Lip-Bu Tan said in a statement, referring to SoftBank founder Masayoshi Son.

Intel shares lost 60% of their value last year, their worst performance in the company’s more than half-century on the public market. The stock is up 18% in 2025 as of Monday’s close.

Intel Stock Price

After the News Break Share Price of investment firm SoftBank Group Fall as much as 5.69%, following news of its $2 billion investment in Intel.

Tan took over as Intel CEO in March after his predecessor, Pat Gelsinger, was ousted in December.

Intel has been a major topic of discussion in Washington of late, due to the company’s role as the only American company capable of manufacturing the most advanced chips.

However, Intel’s foundry business, which is designed to manufacture chips for other companies, has yet to secure a major customer, a critical step towards stabilization and expansion. Last month, Intel said it would wait to secure orders before committing to certain future investment in its foundry.

Tan met with President Donald Trump last week after the president had called for the CEO’s resignation. The U.S. government is considering taking an equity stake in Intel, according to reports.

SoftBank, meanwhile, has become an increasingly large player in the global chip and AI markets.

In 2016, SoftBank acquired chip designer Arm in a deal worth about $32 billion at the time. Today the company is worth almost $150 billion. Arm-based chips are part of Nvidia’s systems that go into data centers.

And in March of this year, SoftBank announced plans to acquire another chip designer, Ampere Computing, for $6.5 billion.

SoftBank was also part of President Trump’s Stargate announcement in January, along with OpenAI and Oracle.

The three companies committed to invest an initial $100 billion and up to $500 billion over the next four years in the AI infrastructure project. Two months later, SoftBank led a $40 billion investment into OpenAI, the largest private tech deal on record.

“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,” Son said in a statement.