Talks with new investors follow SoftBank’s $2 billion stake as pressure builds on turnaround plan
Intel (INTC) is in discussions with major investors to secure another equity infusion at a discounted price, according to a CNBC report on Wednesday. The talks come just days after SoftBank Group committed $2 billion for a stake of just under 2%, purchased at $23 per share.
The move highlights the financial challenges facing the chipmaker as it tries to revive its struggling contract manufacturing business. Competing with Taiwan’s TSMC requires billions of dollars in investment, and Intel’s balance sheet has been stretched thin. Shares fell 7% following the news of new fundraising efforts, erasing part of the nearly 7% gain posted Tuesday on SoftBank’s announcement.
Investor interest comes amid broader political and strategic tensions. Last week, reports surfaced that the U.S. government may take a stake in Intel. On Tuesday, Commerce Secretary Howard Lutnick emphasized that Washington expects equity in return for CHIPS Act grants, of which Intel has already received $8 billion — the largest disbursement to date.
Under new CEO Lip-Bu Tan, Intel has scaled back the ambitious manufacturing expansion plans championed by his predecessor. Despite these adjustments, the company has been unable to establish a presence in the surging artificial intelligence chip market, which remains dominated by Nvidia. Rival AMD has also continued to chip away at Intel’s market share in servers and personal computing.
The financial picture remains grim. Intel posted a staggering $18.8 billion loss in 2024 — its first annual loss since 1986 — and has not generated positive adjusted free cash flow since 2021. The company’s leadership has also faced scrutiny, with President Donald Trump reportedly pressing Tan to resign over ties to Chinese firms.
With its turnaround plan under pressure, Intel’s ability to attract fresh investment may determine whether it can reclaim relevance in a fast-changing semiconductor landscape.
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