Intel rises as US confirms talks for government stake, chipmaker announces SoftBank investment
Shares of Intel surged higher Tuesday, after the company reported that Japanese tech giant SoftBank Group was buying a $2 billion stake in the US chipmaker and Commerce Secretary Howard Lutnick confirmed that the US government was in discussions with the company for an equity stake.
The equity investment by SoftBank will make the firm the sixth-largest Intel shareholder, per LSEG data cited by Reuters. Bloomberg reported earlier this week that the discussions confirmed by Lutnick center around a 10% US government stake in Intel, which would make the US government the chipmaker’s largest equity owner.
“Why are we giving a company worth $100 billion this kind of money? What is in it for the American taxpayer? And the answer Donald Trump has is we should get an equity stake for our money,” Lutnick said Tuesday, referring to funding from the CHIPS Act signed into law under former President Joe Biden. “So we’ll deliver the money, which was already committed under the Biden administration. We’ll get equity in return for it.”
The SoftBank deal was announced by the two companies on Monday evening.
SoftBank’s capital injection will come as something of a lifeline for the struggling company. Intel reported an annual loss of $18.8 billion last year as the once dominant chipmaker looks to catch up to rivals like TSMC, which has gained market share during the AI boom.
The equity investment by SoftBank will make the firm the sixth-largest Intel shareholder, per LSEG data cited by Reuters. Bloomberg reported earlier this week that the discussions confirmed by Lutnick center around a 10% US government stake in Intel, which would make the US government the chipmaker’s largest equity owner.
“Why are we giving a company worth $100 billion this kind of money? What is in it for the American taxpayer? And the answer Donald Trump has is we should get an equity stake for our money,” Lutnick said Tuesday, referring to funding from the CHIPS Act signed into law under former President Joe Biden. “So we’ll deliver the money, which was already committed under the Biden administration. We’ll get equity in return for it.”
The SoftBank deal was announced by the two companies on Monday evening.
SoftBank’s capital injection will come as something of a lifeline for the struggling company. Intel reported an annual loss of $18.8 billion last year as the once dominant chipmaker looks to catch up to rivals like TSMC, which has gained market share during the AI boom.
