Japanese conglomerate’s backing boosts confidence in chipmaker’s turnaround efforts
Intel (INTC) shares jumped more than 9% on Tuesday after SoftBank Group announced a $2 billion stake in the struggling semiconductor company. The move provides a significant vote of confidence as Intel pushes forward with its ongoing restructuring under CEO Lip-Bu Tan.
The investment follows a turbulent week for Intel’s stock. Reports that the Trump administration was considering taking a stake initially boosted shares, but subsequent speculation that the government might acquire as much as 10% of the company sent them sliding on Monday. Despite the volatility, Intel stock remains up 18% year-to-date and 13% over the past twelve months.
Tan praised the partnership, highlighting his decades-long relationship with SoftBank CEO Masayoshi Son. “We are very pleased to deepen our relationship with SoftBank, a company at the forefront of emerging technology and innovation,” Tan said, underscoring their shared vision for strengthening U.S. technology and manufacturing leadership.
Intel’s turnaround has been marked by cost-cutting measures, including a 15% workforce reduction, and scaling back ambitious plans laid out by former CEO Pat Gelsinger. Notably, the company has delayed its $20 billion Ohio chip complex while canceling some international expansion projects.
The chipmaker is seeking growth through its third-party foundry business, leveraging its 18A chip technology. Agreements with Microsoft and Amazon provide momentum, though Intel still remains its own biggest customer. Meanwhile, rivals AMD and Nvidia continue to dominate in servers and artificial intelligence, areas where Intel has struggled to gain ground.
SoftBank’s investment could provide the stability and credibility Intel needs as it navigates competitive pressures and attempts to reclaim relevance in the semiconductor industry. Investors will be watching closely to see whether the partnership accelerates Intel’s turnaround and bolsters its fight in the AI-driven future of chips.
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