SoftBank Invests $2B in Intel, Boosting Shares Amid Chip Sector Struggles

Intel shares surged 6% in premarket trading after SoftBank Group announced a $2 billion investment in the U.S. chipmaker. The Japanese conglomerate will pay $23 per share, a slight discount to Monday's closing price, signaling confidence in Intel's role in expanding advanced semiconductor manufacturing domestically.

SoftBank CEO Masayoshi Son framed the move as part of a broader $100 billion U.S. investment plan first discussed with then-President-elect Donald Trump. The deal follows reports that the TRUMP administration considered converting CHIPS Act grants into equity—a move that could have made the federal government Intel's largest shareholder.

Despite posting better-than-expected Q2 sales last month, Intel continues to face challenges. The company unexpectedly reported an adjusted loss and initiated layoffs, though its stock remains up 18% year-to-date.