The deal, announced on Monday, will make SoftBank one of Intel’s top 10 shareholders and underscores the Japanese tech conglomerate’s sweeping bet on artificial intelligence, which already includes the $500 billion Stargate U.S. data center project and a $30 billion stake in OpenAI.
SoftBank will purchase new Intel shares at $23 each—slightly below Monday’s closing price of $23.66—giving it just under a 2% equity stake. The investment does not include a board seat or a chip-purchasing commitment, according to a person familiar with the matter.
“This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role,” SoftBank founder and CEO Masayoshi Son said in a statement.
Intel’s Struggles and Turnaround Effort
The move comes at a turbulent time for Intel, which posted an $18.8 billion annual loss in 2024—its first since 1986. The company has been losing ground to rivals such as AMD in its core personal computer and server markets, while its ambitious push to rival Taiwan Semiconductor Manufacturing Company (TSMC) as a contract chipmaker has faltered.
Intel’s new CEO, Lip-Bu Tan, is under pressure to deliver results after meeting U.S. President Donald Trump last month. Reports suggest the government is considering taking up to a 10% stake in Intel to secure domestic semiconductor capacity. While the SoftBank investment is unrelated to Washington’s deliberations, the combination of private and potential public backing signals strong interest in keeping Intel competitive in the global chip race.
“Intel’s dual role as designer and manufacturer uniquely positions it as potentially the best platform in the U.S. to compete with TSMC,” noted Charu Chanana, chief investment strategist at Saxo.
Market Reaction and Wider Context
Following the announcement, Intel’s stock surged 5.6% in after-hours trading, while SoftBank shares fell more than 5% on Tuesday in Tokyo. Analysts attributed the drop partly to investor caution over SoftBank’s aggressive spending spree, which in 2025 alone has included mammoth commitments to AI infrastructure and partnerships.
Just this week, Taiwan’s Foxconn revealed plans to manufacture data center equipment in Ohio in partnership with SoftBank as part of the Stargate initiative.
For Intel, however, the $2 billion cash infusion could provide much-needed breathing room as it retools its contract manufacturing business to attract new clients and stem its market decline. Whether the SoftBank endorsement can translate into a full-scale turnaround remains to be seen, but the investment represents a rare vote of confidence at a critical juncture for the storied U.S. chipmaker.