Key Highlights:
- SoftBank will be investing $2 billion into Intel by way of purchasing shares representing about 2% of the company’s outstanding stock.
- In the past one year, the share price of Intel crashed down almost 60% amid its attempt to make its way into the AI business under the dominating threat of Nvidia.
- This investment brings renewed confidence into Intel, which has already splurged on building its chip manufacturing business yet has not been able to get major clients.
Intel and SoftBank announced on Monday that the Japanese tech giant will invest $2 billion in the struggling chipmaker.
SoftBank is buying Intel’s common stock at $23 per share — just slightly below Monday’s closing price of $23.66. Following the announcement, Intel’s shares jumped nearly 6% in after-hours trading to hit $25.
According to FactSet, the deal gives the fourth-largest shareholder, Softbank, a 2% share of Intel. It’s a strong vote of confidence for Intel, which has so far failed to capitalize on the AI boom in advanced semiconductors and has spent heavily on a manufacturing business that has yet to land major customers.
Intel CEO Lip-Bu Tan expressed appreciation for the partnership, saying in a statement, “Masa and I have worked together for decades, and I deeply value the trust he’s shown in Intel with this investment,” referring to SoftBank’s founder Masayoshi Son.
Intel’s shares had dropped 60% last year — marking one of the worst performances in the company’s decades-long public history. As of Monday’s close, Intel’s stock is up 18% in 2025.
Tan took over as CEO in March, replacing Pat Gelsinger, who was ousted in December.
In Washington, Intel has recently become a significant concern because it is the only company capable of building the most cutting-edge chips within the US. However, its foundry business — which builds chips for other companies — still hasn’t secured a large customer, a crucial step toward long-term growth and stability. Last month, Intel said it would hold off on further investment in its foundry until it secures firm orders.
Last week, Tan met with former President Donald Trump, following calls for leadership changes at Intel. According to reports, the U.S. government is considering taking an equity stake in the company.
Meanwhile, SoftBank has become an increasingly significant player in the global chip and AI markets.
In 2016, SoftBank bought the chip designer Arm for about $32 billion; the present value is now almost $150 billion. Arm-based chips are a key part of Nvidia systems used in data centers.
In March this year, SoftBank announced plans to acquire another chip design firm, Ampere Computing, in a $6.5 billion deal.
SoftBank was also part of the high-profile “Stargate” announcement in January, alongside OpenAI and Oracle. The trio pledged an initial $100 billion — potentially scaling up to $500 billion over four years — for an AI infrastructure project
Two months later, SoftBank invested $40 billion in OpenAI, marking the largest private tech deal in history.
Masayoshi Son said in a statement,
“This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will continue to grow in the U.S., with Intel playing a vital role in that future.”