INTC: Intel Stock Pumps 5% on $2 Billion Injection by SoftBank. US Set to Build a Stake, Too.

Embattled US chipmaker is also in talks with the Trump administration for a stake of up to 10%. Can Intel’s turnaround plan work this time? Stock is down 52% in the past five years.

💰 SoftBank Steps In

• Intel stock INTC jumped 5% in pre-market Tuesday after Japan’s tech investor SoftBank 9984 agreed to invest $2 billion in the struggling US chipmaker. The move adds a fresh jolt of confidence as reports swirl that the Trump administration may also buy a stake in Intel, potentially making Uncle Sam a shareholder.
• SoftBank will scoop up shares at $23 apiece, just below Intel’s latest close of $23.66, giving it about a 2% stake. CEO Lip-Bu Tan framed the deal as a “deepening of the relationship” with SoftBank founder Masayoshi Son, praising the risk taker as a leader in emerging tech and innovation.
• Son called the investment a “strategic bet” on US semiconductor manufacturing, pointing to Intel’s central role in expanding domestic chip supply.

🏛️ Washington’s Possible Stake

• The Wall Street Journal reported Intel is in talks with the Trump administration over a government stake of up to 10%. A chunk of Intel’s $7.9 billion in Chips Act subsidies could be converted into equity, aligning government funds directly with Intel’s future success.
• For Trump, backing Intel is both economic and political: strengthening US chip sovereignty while countering Asian rivals in the AI arms race.
• Despite billions in subsidies, Intel has struggled to regain ground against Nvidia NVDA and Qualcomm QCOM, which continue to dominate leading-edge chip design.

📈 The Catch-Up Game

• Under ex-CEO Pat Gelsinger, Intel tried pivoting its manufacturing arm to take on external clients, but orders never scaled big enough to justify its massive capex push.
• Shares are still down 52% over the past five years, raising doubts that even a $2 billion injection from SoftBank and a potential government stake can fix Intel’s execution gap.
• The SoftBank and potential US stakes signal a vote of confidence in Intel’s turnaround and in the push to secure America’s semiconductor future.
• But the investment is tiny next to Intel’s mountain of spending needs — the company is guiding tens of billions in capex to keep pace with TSMC and Samsung.