SoftBank Invests USD 2B in Intel & Becomes Top 10 Shareholder

 

SoftBank Group Corp. is taking a USD 2 billion stake in Intel Corp., buying just short of a 2 percent equity interest that ranks it among the U.S. chipmaker's top-10 largest shareholders. The transaction, announced by the group, is a much-needed shot in the arm for Intel, which has languished for years as a performer and recorded an USD 18.8 billion yearly loss in 2024, its first since 1986.

The Japanese investment company will buy Intel common shares at USD 23 a share via a primary offering. Based on LSEG statistics, SoftBank will be Intel's sixth-largest shareholder but will not ask for a board seat or agree to purchase Intel chips.

Intel shares jumped 5.6 percent in after-hours trading, and SoftBank shares declined over 5 percent after the news.

Key Highlights:

• SoftBank to invest USD 2B in Intel, becoming its sixth-largest shareholder
• Intel shares surged 5.6 percent post-announcement, while SoftBank stock fell 5 percent
• Deal seen as vital support for Intel as it lags rivals in AI chip market

“SoftBank sees Intel's strategic value in being the sole U.S. based semiconductor company investing in cutting-edge process R&D, wafer fabrication, and advanced packaging on U.S. ground," someone who is familiar with the subject said to Reuters.

Intel's new CEO Lip-Bu Tan , who came on board after years of lost chances, has toned down ambitious plans for a foundry venture proposed by his predecessor. The SoftBank agreement brings new support as Intel struggles to catch up with competitors such as Nvidia, which rules the booming AI chip segment.

Also Read: SoftBank Investment Exploring Structred Credit Funds

The action comes as reports indicated that the U.S. government is also considering a 10 percent stake in Intel, after President Donald Trump demanded Tan's resignation due to his China connections. Nonetheless, a source clarified SoftBank's investment is "not related to Trump."

The investment is part of SoftBank's aggressive 2025 spending binge, which also involves a USD 30 billion pledge to OpenAI and investment in Stargate, a USD 500 billion U.S. data center venture.